On Friday, the Biden administration accidentally leaked a memo in which it acknowledged that charging fossil fuel companies less to drill would result in “greater energy security” – despite the administration’s plans to hike royalty fees.
According to the memo obtained by Fox News Digital, former Bureau of Ocean Energy Management (BOEM) Director Amanda Lefton recommended late last year that, as part of its climate agenda, that the Department of the Interior (DOI) go ahead with increasing royalty fees for an oil and gas lease sale spanning 958,202 acres in the Cook Inlet off the coast of Alaska.
“If a Cook Inlet prospect would be developed, there would be additional government revenues and greater energy security for the State of Alaska, especially if development of natural gas resources in the Cook Inlet ameliorated the long-term supply challenges facing the Anchorage area,” Lefton wrote in the memo.
“Nevertheless, because of the serious challenges facing the Nation from climate change and the impact of [greenhouse gasses] from fossil fuels, BOEM is not recommending this option since it would not include an appropriate surcharge to account for those impacts,” she continued.
According to the Fox News report, Lefton recommended that the federal government charge drillers an increased royalty of 18.75% as opposed to an alternative of 16.67% which she said would attract more bids and “be more likely to facilitate expeditious and orderly development of [offshore] resources.”
DOI Assistant Secretary Laura Daniel-Davis signed off on Lefton’s recommendation, saying in a record of her decision that she selected a fee of 18.75% “because this rate constitutes the most reasonable balancing of environmental and economic factors for the American public.” She reportedly neglected to mention the 16.67% alternative would produce greater energy security as noted in the memo.
In May, the Biden administration had canceled Lease Sale 258, which had been proposed during the Trump administration, prompting backlash as the decision was made while oil prices were soaring to record high levels. However, the Inflation Reduction Act (IRA) mandated that the Biden administration reverse its decision and hold the sale by the end of 2022.
“BOEM ultimately held the auction, known as Lease Sale 258, on Dec. 30. The sale garnered just one bid worth $63,983 for a single 2,304-acre tract, according to federal records,” Fox News reported.
In response to the news, Democrat Sen. Joe Manchin (WV) slammed the Biden administration for attempting to undermine Congress and for prioritizing their climate agenda over the needs of Americans.
“The Department of the Interior mistakenly posted an internal memo making recommendations to Acting Assistant Secretary for Land and Minerals Management, Laura Daniel Davis, on the Cook Inlet Oil and Gas Lease Sale 258 mandated by the Inflation Reduction Act,” Manchin said in a statement.
“I am appalled by its contents, which make crystal clear that this administration is literally putting their radical climate agenda ahead of the needs of the people of Alaska and the United States,” he continued.
“The contents of this memo speak volumes – if this is what this Administration truly believes and is how they are going to make decisions, it is unacceptable,” Manchina added. “It’s a clear and intentional threat to energy security and the all-of-the above energy policy Congress has consistently reinforced.”