The United States will review the oil and gas link rule in Biden’s time

(Reuters) -Trump Administration will review a Biden era standard that required the oil and gas industry to provide about $ 7 billion in new financial guarantees to cover the cost of disabling the old infrastructure, said the Department of the Interior.

In a statement, the agency said it would develop a new regulation, but would not give details. The movement is aligned with the push of President Donald Trump to reduce federal regulations and increase domestic energy production.

An interior spokesman rejected more comments.

“This review will allow the energy producers of our nation to redirect their capital to future leases, explorations and production by financially protecting the North -American taxpayer,” said Interior Secretary Doug Burgum in the statement.

Biden’s policy, which was completed last year by the Interior Ocean Ocean Energy Management Office, required companies without investment quality credit ratings or sufficient oil and gas reserves in a lease to provide a supplementary link to reduce the risk of taxpayers in the event that the perforator could not cover the cost of dismantling the equipment.

The rule was challenged in court by three oil producing states that claimed that the rule would increase costs for smaller companies. A federal judge refused to block the rule earlier this year.

The rule was supported by environmental conservation groups such as the Sierra Club that said at the time that the Biden reform “would guarantee that oil and gas companies are responsible for their cleaning responsibilities and that taxpayers will not stop making their bags”.

(Nichola Neture Reports)