The Department of Interior announced Friday it planned to resume onshore oil and gas lease sales on federal land.
Highlights
- The new royalty rate is 18.75% instead of 12.5%.
- It’s the first time the rate has been increased.
- The increase comes after a plan to increase the rate was put on hold last year.
- The rate is higher than the previous rate that was used to calculate the amount of oil and gas per capita consumption in the U.S.
- It will be used for onshore oil and natural gas drilling in the coming weeks.
- The new rate is set to be increased to 18% for the price of natural gas and other natural gas purchases in the United States in the next few years.