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Higher Fees and Penalties for Oil and Gas Companies

This act increases fees and penalties for oil and gas companies operating on federal lands, aiming to boost government revenue. Citizens might experience indirect effects through potential fuel price changes, but the primary goal is to ensure a fairer return from public resources.
Key points
Increased onshore oil and gas royalty rates from 12.5% to 18.75%.
Raised minimum bid amounts for land leases from $2 to $10 per acre.
Increased inspection fees and penalties for violations, aiming to improve safety and accountability.
Repealed certain royalty relief provisions for oil and gas companies in the Gulf of Mexico and Alaska.
Introduced royalties on all extracted methane, including that lost through venting, flaring, or fugitive releases, to reduce waste and emissions.
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Additional Information
Ending Taxpayer Welfare for Oil and Gas Companies Act of 2021
Print number: HR 1517
Sponsor: Rep. Porter, Katie [D-CA-45]
Process start date: 2021-03-02