WASHINGTON, D.C. — The Department of the Interior has proposed changes to how royalties are calculated on oil, natural gas and coal produced on federal lands, part of the Trump administration’s broader effort to reduce regulatory requirements for domestic energy producers while maintaining federal revenue collections.
The proposed rule, issued by the Office of Natural Resources Revenue, would revise the valuation methods used to determine the amount energy companies owe the federal government for extracting resources from public lands.
Interior said the proposal is intended to simplify royalty calculations, reduce reporting requirements and provide clearer guidance on valuation practices.
“The Trump administration is taking the handcuffs off American energy producers,” Interior Secretary Doug Burgum said in a statement, describing the proposal as a way to reduce administrative burdens while ensuring taxpayers receive a return from public resources.
The department said the rule would streamline processes for determining the value of oil, gas and coal production for royalty purposes and eliminate reporting requirements it considers unnecessary.
Officials also said the changes would improve transparency by clarifying valuation methodologies and increasing the accuracy of industry-reported data.
The proposal aligns with President Donald Trump’s executive orders aimed at expanding domestic energy production and reducing federal regulation, including Executive Order 14154, “Unleashing American Energy,” and Executive Order 14192, “Unleashing Prosperity Through Deregulation.”
The Interior Department plans to publish the proposed rule in the Federal Register in the coming days and is seeking public comment from industry participants, stakeholders and other interested parties before finalizing the changes.
The rule represents another step in the administration’s push to increase domestic energy production and ease compliance requirements for companies operating on federal lands, an effort officials argue will strengthen energy security and lower costs while critics have warned that deregulation could reduce oversight of resource extraction.
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