A $369 billion climate and energy spending package unveiled by Senate Democrats last week could impact the oil and gas industry on multiple fronts, namely with regard to leasing, royalty rates and methane emissions. 

Inflation Reduction Act

Senate Majority Leader Chuck Schumer and fellow Democratic Sen. Joe Manchin announced an agreement late Wednesday to add the energy and climate provisions to a budget reconciliation bill that could be voted on as soon as this week.

The proposed legislation, dubbed the Inflation Reduction Act of 2022, targets a roughly 40% reduction in greenhouse gas emissions by 2030, “and would represent the single biggest climate investment in U.S. history, by far,” according to a fact sheet. It also mandates a 15% corporate minimum tax rate for the roughly 200 largest...