Section 50263 of the IRA requires oil and gas operators with federal land or Outer Continental Shelf leases issued after the date of enactment to pay royalties on all gas produced from the leased site, including “all gas that is consumed or lost by venting, flaring, or other negligent releases through any equipment during upstream operations.” There are limited exceptions, including for emergency situations posing danger to health, safety, or the environment, gas used on-site, and gas that is “unavoidably lost” as defined by DOI.
Current Status:
Repealed or Modified by Congress
Section 50103 of the One Big Beautiful Bill Act of 2025 (Public Law 119-21) repealed this IRA provision.
Trump Administration Actions:
- Congress Passes Budget Bill, Rescinding Funds and Repealing IRA Programs and Tax Credits [07/03/2025]
- Litigation Compliance Report Indicates DOI Released Some Previously Frozen Awards [04/23/2025]
- DOI Secretary Issues Order to Review IRA Regulations and Spending [02/03/2025]
- OMB Orders Temporary Pause on Financial Assistance Programs, Later Rescinded [01/27/2025]
- OMB Clarifies Scope of the Order to Halt IRA Spending [01/21/2025]
- Trump Issues Executive Order to Halt All IRA Funding Disbursements [01/20/2025]
Implementation Status at End of Biden Administration:
Complete
DOI finalized its rule to implement this section in April 2024.
Biden Administration Actions:
- DOI Issues Final Gas Waste Prevention Rule [04/10/2024]
- DOI Issues Proposed Gas Waste Prevention Rule [11/30/2022]