March 5 (Reuters) – The Trump administration said on Thursday it would replace a Biden-era rule that required some oil and gas companies to set aside billions of dollars in extra funds for decommissioning oil platforms if they go out of business.

The new rule will save the industry $484 million a year in compliance costs, the U.S. Interior Department said in a statement, a move aligned with U.S. President Donald Trump’s efforts to loosen regulations on industry.

Here are more details:

* The Biden administration’s 2024 rule required oil and gascompanies to provide $6.9 billion in new bonds or otherfinancial assurances to protect taxpayers from cleanup costs inthe event of bankruptcy. * Trump’s Interior Department said the costs fell on smallbusinesses and changes would free up funds for investment andjob growth. * The proposal will be published in the Federal Register andbe available for public comment for 60 days. * A 2024 Government Accountability Office report found thegovernment was exposed to billions in financial risks ifoffshore oil and gas companies failed to meet theirdecommissioning obligations.

(Reporting by Nichola Groom; editing by Diane Craft)

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