June 22 (Reuters) - The Trump administration on Monday proposed looser rules for oil and gas drilling operations on federal lands, including a dramatic cut to clean-up costs for abandoned wells.
The moves are aligned with President Donald Trump's goal to reduce regulations for businesses and make it easier to invest in production of domestic fossil fuels.
"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," Interior Secretary Doug Burgum said in a statement.
The Department of the Interior said it would lower the cost of statewide bonds for wells to $25,000 per state from $500,000, a level implemented during the Biden era.
Bonds cover the costs of plugging abandoned oil and gas wells if an oil and gas company goes out of business. An analysis by non-profit Resources for the Future in 2021 estimated it costs about $20,000 to plug a single oil and gas well.
Interior's other proposals include shortening public participation in oil and gas permitting to 10 days from 90 days.
The agency is also proposing to roll back requirements aimed at curtailing methane emissions from oil and gas operations. The changes would cut compliance costs by nearly $17 million a year, Interior said.
Methane is a potent greenhouse gas that tends to leak from drill sites and pipelines.
(Reporting by Nichola Groom; Editing by Cynthia Osterman)
