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Thursday, April 3, 2025

Senators urge review of Biden-era oil and gas bonding requirements

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Senator John Hoeven, U.S. Senator of North Dakota | Senator John Hoeven Official website

Senator John Hoeven, U.S. Senator of North Dakota | Senator John Hoeven Official website

Senator John Hoeven of North Dakota, along with Senator Steve Daines from Montana and eight other Republican senators, has urged the U.S. Department of the Interior to reconsider recent regulations regarding oil and gas wells on federal lands. The senators sent a letter to Secretary Doug Burgum, recommending a rollback of the binding requirements implemented during the Biden administration.

The letter supports the review of "former President Biden’s burdensome regulatory actions," which, according to the senators, would reduce energy independence and increase costs. They specifically requested a review and rollback of the Bureau of Land Management's rule "Fluid Mineral Leases and Leasing Process,", which significantly raises costs for small oil and gas producers by increasing the bonding requirements for wells on federal lands. The senators emphasized that while proper stewardship of public lands is essential, bonding requirements must remain reasonable and achievable to prevent driving producers out of business and increasing costs for families.

"Energy development on federal lands is critical to strengthening America’s energy security, powering our economy, and supporting state and local conservation efforts," they stated. They urged Secretary Burgum to reconsider the bonding requirements and reinstate reasonable state and nationwide requirements to maintain long-term energy dominance and community prosperity.

The letter was co-signed by Senators Mike Lee, James Lankford, John Curtis, Kevin Cramer, Tim Sheehy, Cynthia Lummis, Markwayne Mullin, and Lisa Murkowski.

The full text of the letter is available online.

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