Senators John Hoeven of North Dakota and Steve Daines of Montana expressed support for a U.S. Department of the Interior review of regulations imposed during the Biden administration. In a letter to Secretary Doug Burgum, they urged a reversal of policies they believe burden small energy producers by increasing bonding requirements for oil and gas wells on federal lands.
“We write to express our support of your review of former President Biden’s burdensome regulatory actions that will reduce American energy independence and raise costs for American families and small businesses,” the senators stated. They referenced Secretarial Order 3418, which calls for a review of the Bureau of Land Management’s April 2024 final rule, “Fluid Mineral Leases and Leasing Process,” that allegedly increases costs on smaller producers.
While acknowledging the importance of stewarding public lands and ensuring proper bonding to clean up abandoned wells, the senators emphasized the need for reasonable bonding requirements. They argued that the current rules could put producers out of business and increase costs for American families. “We must ensure that bonding requirements are set at a reasonable and achievable rate for all oil and gas producers,” they wrote. The letter stressed that energy development on federal lands is vital for America’s energy security, economic activity, and conservation efforts.
The letter was signed by eight other Republican senators: Mike Lee, James Lankford, John Curtis, Kevin Cramer, Tim Sheehy, Cynthia Lummis, Markwayne Mullin, and Lisa Murkowski. The senators collectively urged reinstating reasonable state and nationwide bonding requirements to support America’s energy dominance and community prosperity.
The full text of the letter is available for public access.
