Alaska’s energy industry faces steep costs as new regulations propose significant fees | Homepage [Video]

It could cost energy companies a lot more to drill on federal land here in Alaska.

The federal government announced Friday new rules that would require oil and gas companies to pay $150,000 per lease to drill on federal land. Right now, it’s $10,000 per lease.

For the first time in a century, energy companies would be forced to pay more in royalties for the oil and gas they take out of public land.

The new rules are meant to generate more money for taxpayers and protect local communities from footing the bill to clean up abandoned oil and gas wells.

The proposed increased cost to drill in Alaska comes as Washington finalizes another plan to limit future oil drilling across 13 million acres of the National Petroleum Reserve in Alaska.