The Trump administration rolled out a set of proposed rule changes on Monday that would significantly loosen requirements for oil and gas companies operating on federal lands, including a sharp reduction in the financial guarantees drillers must set aside for abandoned wells.
The proposals align with President Donald Trump’s broader push to scale back business regulations and boost domestic fossil fuel production.
Interior Secretary Doug Burgum defended the changes in an official statement, saying, “These targeted updates cut through the red tape that has historically deterred investment, ensuring our public lands remain a reliable engine for economic growth and innovation.”
One of the most significant changes involves statewide bonding requirements — financial guarantees used to cover the cost of sealing off abandoned oil and gas wells if a company goes under. The Department of the Interior is proposing to drop that bond amount from $500,000, a figure set during the Biden administration, down to just $25,000 per state.
To put that in perspective, a 2021 analysis by the non-profit organization Resources for the Future estimated that plugging a single abandoned well costs roughly $20,000.
The agency is also proposing to dramatically shorten the public comment period for oil and gas drilling permits — cutting it from 90 days down to just 10 days.
Additionally, the Interior Department wants to walk back certain regulations designed to limit methane leaks from drilling sites and pipelines. Methane is a powerful greenhouse gas that commonly escapes from those locations. The agency says rolling back those rules would reduce compliance costs for the industry by nearly $17 million annually.
