For decades taxpayers have lost out due to an outdated oil and gas leasing system. The U.S. government, which manages the oil and gas resources on our nation’s federal lands, must ensure that taxpayers receive a fair return from their development. However, outdated leasing processes and below-market fees have failed to provide a fair return, instead burdening us with growing financial liabilities.

In 2022, Congress passed a suite of fiscal reforms to the federal onshore oil and gas leasing system. Now, the Department of the Interior is taking an important step for taxpayers by: 1) proposing an update to decades-old bonding requirements, 2) focusing federal resources for oil and gas leasing in areas that will yield the greatest results for taxpayers, and 3) codifying the reforms passed by Congress. The proposed changes will ensure taxpayers receive a fair return from the development of federally owned resources and are not left with costly liabilities from orphaned wells.