U.S. will hike royalty rate for drillers at onshore auctions

A piece of land that has a federal drilling lease issued for oil and gas development is seen in Mecosta County, Michigan, U.S., March 20, 2021. Picture taken March 20, 2021. REUTERS/Emily Elconin

Jan 31 (Reuters) - The Biden administration will raise the royalty rate that drilling companies must pay on oil and gas leases it plans to sell in the first quarter of this year, according to a posting on the U.S. Bureau of Land Management web site.

The royalty rate for leases offered this quarter will be 18.75%, up from the 12.5% minimum rate required by law, the post, which was viewed by Reuters on Monday, said.

Reporting by Nichola Groom Editing by Chris Reese

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