Biden Resumes Lease Sales for Oil & Gas Drilling with Higher Royalties, Gov. Gordon Responds
The Biden Administration recently announced that it will resume lease sales for oil & gas drilling on federal lands, but that it would also raise the federal royalties that companies must pay in order to drill.
This is the first increase in those fees in more than 100 years.
When the announcement was made, Governor Gordon said it was "disingenuous, disheartening, and a crushing blow to the economies of many Western States, particularly Wyoming,” he stated. “No matter how it is framed, this action is still a ban on leasing.”
"The announcement of an upcoming federal oil and gas lease sale is welcome news, but long overdue. While we don’t know the exact number and location of the Wyoming parcels, after 15 months without a lease sale in our state, to learn that royalty rates will be increased and available acreage significantly reduced is hardly cause for unbridled celebration. I am concerned that these changes will have a chilling effect on Wyoming companies as they prepare their bids."