Interior reverses Obama-era rules for drillers to pay for fixing up the environment

The Interior Department is repealing regulations that would require energy companies to compensate for the environmental damage or harm to public lands that may have occurred from their activity.

Instead, the rules enforced under the previous administration will be made “voluntary” under the Trump administration’s policy.

“This is a change from the prior administration’s policy,” an Interior spokesperson said. Going forward, the Bureau of Land Management will no longer require companies to compensate for projects on public lands. “If they so choose, project proponents may still voluntarily complete compensatory mitigation,” the spokesperson explained.

“Except where the law specifically requires, the [Bureau of Land Management] must not require compensatory mitigation from public land users,” according to an agency memo issued Tuesday.

“While the BLM, under limited circumstances, will consider voluntary proposals for compensatory mitigation, the BLM will not accept any monetary payment to mitigate the impacts of a proposed action,” the memo explained.

The memo said the action is in compliance with President Trump’s executive order, “Promoting Energy Independence and Economic Growth,” which directed the Interior Department to review all existing regulations and other actions that could “potentially burden” the development of domestically produced energy resources.

The memo further explains that it may result in decreased costs for oil, natural gas, and geothermal producers on federal lands.

“It is unlikely that this policy would have any material adverse impact on energy supply, distribution, or use,” it said.

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