Central ND News

BISMARCK – U.S. Senator Kevin Cramer (R-ND) has spoken out against the Bureau of Land Management’s (BLM) final onshore oil leasing rule, which imposes increased bonding requirements, fees, royalty rates, and permitting regulations on federal lands. Senator Cramer criticized the rule, attributing it to the Biden administration's Inflation Reduction Act, which he believes is exacerbating inflation rather than alleviating it.

Cramer stated, "Inflation is soaring, and energy is at the heart of it. This rule is the direct result of the Biden administration’s partisan so-called Inflation Reduction Act, and ironically, it is doing anything but reducing the inflationary pain Americans are feeling. Democrats and their climate zealots rammed through policies they knew would add costly regulatory burdens on American energy producers, and now North Dakota’s operators and families are being saddled with the bill."

The key elements of the rule include significant increases in bonding requirements, royalty rates, minimum bids for leases, rental rates, and the introduction of new fees for expressions of interest. Additionally, preferences for offering lands for lease will now be based on wildlife, cultural sites, and existing infrastructure.

This rule comes after President Biden's temporary halt on federal oil and gas leases early in his administration, which was later challenged in court. U.S. District Judge Daniel Traynor ordered the BLM to resume quarterly oil and gas lease sales in North Dakota in March 2023.

Senator Cramer's strong opposition to the new rule reflects concerns about the impact it will have on American energy producers, particularly in North Dakota.