Outdated Royalty Rates Cost Taxpayers up to $730 Million Per Year
Oil companies lease land from the federal government and pay royalties on the oil and gas that is produced. But the federal government has a low royalty rate - much lower than rates charged by Western oil producing states like Wyoming, Colorado and New Mexico. This gap shortchanges American taxpayers up to $730 Million per year. State taxpayers in Western states, which get an even split of federal royalty revenues, also lose out.