For the first time in over 60 years, the Bureau of Land Management (BLM) – the federal agency that oversees oil and gas activity on federal lands – has increased its bond minimums. Bonds are an insurance policy for American taxpayers – the true owners of federal lands – and are supposed to ensure that companies who drill on federal lands have set aside enough funds to cover plugging and clean-up costs once production is finished. But for decades BLM’s oil and gas bond minimums were never increased, not even to account for inflation and even as companies drilled tens of thousands of wells on federal land across the country. Companies could provide as little as $10,000 in bond coverage per lease no matter how many wells they drilled. This flawed-system led to a $13.7 billion deficit between the estimated reclamation costs for the 90,000+ wells on federal lands and the total amount of bonds held by BLM. Slowly but surely, BLM’s new bond minimums will bring that deficit down. Companies now have three years – a very generous timeframe, mind you – to increase their lease bonds to the new minimum of $150,000. This level accounts for inflation, as well as reclamation costs for a typical lease on public lands. And it builds on bonding reform at the state-level, as many states, including Wyoming, recently strengthened their bonding requirements in response to what some have described as an orphaned well “crisis.” Not surprisingly, the oil and gas industry would much prefer that you – the American taxpayer – continue to foot the bill for its clean-up costs. The...
PRESS RELEASE October 24, 2023 CRS Releases “Restoring Accountability” Follow-up Report on Taxpayer Exposure from Orphaned Oil and Gas Wells Conservatives for Responsible Stewardship (CRS), a national grassroots organization with more than 23,000 members, has produced a new report following up on its 2021 report Broken Promises, which detailed the staggering taxpayer exposure from orphaned and abandoned oil and gas wells. “Despite agreeing, as a condition of their drilling permit, to fully clean up and plug well sites once they are finished using them, oil and gas companies regularly skip out on that obligation, leaving us taxpayers on the hook for billions of dollars in clean-up costs,” explained CRS president David Jenkins. This new report, with updated data, underscores how this fiscal burden on taxpayers continues to grow and explains how long overdue new rules proposed by the Department of Interior (RIN 1004–AE80) to significantly increase its oil and gas program bonding requirements can help. In Broken Promises, we reported that at the end of FY2020, there were more than 96,000 “producible and service wells” on federal public lands, which could leave U.S. taxpayers on the hook for as much as $13.7 billion in future clean-up costs. Since then, BLM has approved more than 11,200 additional permits for oil and gas companies to drill new wells on federal public lands—wells that, without federal bonding reform in place, potentially exposing U.S. taxpayers to an additional $1.6 billion more in clean-up costs. Taxpayers could eventually have to pony up as much as $15 billion, and that does not account for any potential future wells from the 34,000 oil and gas leases...
The Trump administration’s recent move to revoke California’s ability to set tougher emissions standards for cars sold in the state is not aimed at rolling back Obama policy, it seeks to reverse a waiver that then governor Ronald Reagan secured for the state more than 50 years ago. Governor Reagan was very committed to cleaning up California’s notorious smog problem, which was largely due to auto emissions. Not only did he support stronger pollution limits, in 1967 he established the California Air Resources Board (CARB) and appointed a scientist—an expert on smog—to lead the agency. That same year, Congress was considering the Air Quality Act of 1967. Reagan wanted assurance that any new federal law would not threaten California’s strong tailpipe pollution standards. He worked with his allies in the California congressional delegation to secure a waiver that allowed the state to set its own, more stringent, pollution limits. Shortly thereafter, Reagan signed a state bill into law curbing auto emissions significantly more than was required by the new federal standards. Reagan was very proud of his smog-fighting efforts, and as president, he made them the topic of a 1984 radio address to the nation. Listen Here: https://www.conservativestewards.org/wp-content/uploads/2019/09/Reagan-Radio-Address1.mp3 This Trump administration move to strip California of its longstanding waiver not only threatens more smog, it represents a strike against states’ rights, and it tramples on Reagan’s legacy by seeking to eliminate one of his signature achievements. Revoking the waiver is part of a broader administration rollback of automobile fuel economy standards that is so illogical even auto manufacturers, including Ford, General Motors, Honda, and Toyota, are opposed. They...
