Salazar to Toughen U.S. Drilling Rules

Source: WSJ

By STEPHEN POWER

Interior Secretary Ken Salazar is expected to announce Wednesday that his agency will require oil and natural-gas companies to clear more regulatory hurdles before they are allowed to drill on federal lands.

Mr. Salazar's action is likely to make it more difficult for the U.S. Bureau of Land Management to fast-track the permitting of oil and gas projects on federal land. BLM field staffers would be required to seek additional approvals from their supervisors and to undertake more visits to areas where energy companies are seeking access, according to people familiar with the matter

The BLM manages more than 260 million acres of federal land, and with it, a significant chunk of U.S. energy supplies. Domestic production from federal onshore oil and gas wells accounts for 11% of U.S. natural-gas supplies and 5% of the nation's oil.

The Obama administration is already locked in a bitter fight with the oil and gas industry over proposals to raise billions of dollars in additional taxes from energy companies, and to cap the emissions of gases caused by burning fossil fuels, which have been linked to global warming.


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