MIL-OSI USA: Reps. Boebert and Hageman Introduce CRA Bill to Terminate Biden’s Anti-Oil and Gas Rule

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Source: United States House of Representatives – Representative Lauren Boebert (Colorado, 3)

Rep. Lauren Boebert and Rep. Harriet Hageman introduced a joint resolution of disapproval under the Congressional Review Act (CRA) to terminate the Biden Regime’s final Fluid Mineral Leases and Leasing Process rule.  

Congresswoman Lauren Boebert (CO-03) stated, “Green New Deal activists killed coal and good-paying jobs in Colorado. Now, the Biden Regime is trying to kill responsible oil and gas production through an overreaching new regulation that targets small businesses, undermines the law, discourages production, and will cause gas prices to increase further. Natural gas provides nearly 35% of Colorado’s electricity generation and heats seven out of every 10 homes. The oil and gas industry supports 300,000 jobs in Colorado, comprises 11% of our state’s economy, and generates nearly $600 million annually for education. Biden’s agency minions fail to recognize these benefits or that America is the world leader in emissions reductions because of significant advancements in technology for oil and gas production. Our bill will terminate the latest regulatory attack on the fossil fuel industry while providing relief for American families so they have access to reliable and affordable energy.”

Rep. Harriet Hageman (WY-AL) said, “This rule will devastate Wyoming’s oil and gas industry. Over 85% of the oil and gas operators in Wyoming are small, locally owned, and operated companies. These 400+ Wyoming companies directly employ over 1,500 Wyoming residents. Should this rule be implemented, Wyoming companies will be cut out of the surety market, preventing essential revenue streams for the state, and killing meaningful jobs that keep our communities afloat. More fees, stricter regulations, ambiguity in the lease approval process – its all just another day at the office for a Biden administration that is doing everything in its power to eliminate fossil fuels. It is critical that Congress fights back and disapproves the Fluid Mineral Leases and Leasing Process final rule.”

Background:

Rep. Lauren Boebert and Rep. Harriet Hageman introduced a joint resolution of disapproval under the Congressional Review Act (CRA) to terminate the Bureau of Land Management’s (BLM’s) final Fluid Mineral Leases and Leasing Process rule.  

On April 23, 2024, the BLM finalized a new regulation entitled Fluid Mineral Leases and Leasing Process. This final rule becomes effective June 22nd. This job-killing new mandate implements provisions from the partisan Inflation Reduction Act (IRA), which increased the royalty rate for production on federal lands while also increasing and creating new fees for oil and gas producers.

While the final rule codifies pieces of the IRA, it also makes major, non-statutory, changes to the BLM’s onshore leasing program. The new regulation greatly increases bonding levels for production on federal lands and disproportionately impacts smaller producers who can’t afford to operate in the surety market. These additional fees will ultimately harm returns and reduce revenues to state and local governments by discouraging development on federal lands.

Additionally, the final rule introduces “preference criteria” in federal leasing which could be devastating for future production on public lands. This is problematic if BLM field offices avoid leasing in all areas with endangered or threatened species, critical habitats, or nearby recreation areas. This new mandate will greatly limit leasing on federal lands in contradiction to the multiple-use mandate established in the Federal Land Policy and Management Act.

The new regulation creates new fees and increases existing fees while blocking new leasing outside of current areas that are producing. This is especially egregious given this Regime’s poor track record with respect to lease sales and drilling permit approvals.

Finally, this rule increases energy production costs while further disincentivizing small businesses and operators from producing domestically. These new costs will ultimately be passed along to consumers, driving up energy costs for American families and further shifting production to countries like Russia, Saudi Arabia, China, and Venezuela.

Earlier this month, Western Energy Alliance, the Independent Petroleum Association of New Mexico, the New Mexico Oil and Gas Association, the North Dakota Petroleum Council, the Petroleum Association of Wyoming, and the Utah Petroleum Association filed a lawsuit challenging this new rule in U.S. District Court. The oil and gas trade associations stated that the new regulation “will deter development of federal oil and gas, disproportionately affect small companies, effectively close eligible and available lands to new leasing, and violate BLM’s duty to promote oil and gas development as a multiple use of federal lands” and asked for the new regulation to be vacated “because the rule is procedurally deficient, arbitrary and capricious, and contrary to law.” 

Every Republican along with 3 Democrats voted to nullify this rule earlier this year with the passage through the House of Representatives of Rep.  Boebert’s Restoring American Energy Dominance Act. 

Cosponsors of this bill include: Rep. Andy Ogles (TN-05), Rep. Kelly Armstrong (ND-AL), Rep. Harriet Hageman (WY-AL), Rep. Troy Nehls (TX-22) Paul Gosar (AZ-09), Ryan Zinke (MT-01), Doug Lamborn (CO-05), Tom McClintock (CA-05), Dan Newhouse (WA-04 ), Randy Weber (TX-14), Matt Rosendale (MT-02).

The full text of Rep. Lauren Boebert and Rep. Harriet Hageman’s joint resolution of disapproval is available HERE.

MIL OSI USA News