CONTACT
Aaron Weiss, Deputy Director
Center for Western Priorities
aaron@westernpriorities.org
720-279-0019
FOR IMMEDIATE RELEASE
April 3, 2020
DENVER—Today, President Trump is expected to meet with CEOs from major oil corporations and trade associations. The meeting comes as a broad range of oil companies and their allies in Congress call on the administration to reduce or suspend royalties for oil and gas produced on public lands, extend the terms of drilling leases and permits, and reduce environmental enforcement. In response, the Center for Western Priorities released the following statement from Executive Director Jennifer Rokala:
“The oil industry has spent the last decade racking up debt at a breathtaking pace and now they’re asking taxpayers to bail out their bad business practices. The oil industry’s wish list is shameless—rip off taxpayers and leave communities vulnerable to even more contamination. But with a former oil lobbyist in charge of the Interior Department, they will likely get what they want.
“Secretary Bernhardt has spent the coronavirus crisis auctioning off oil and gas leases and approving drilling permits, while leaving national park staff at risk.
“This crisis has shown just how valuable our parks and public lands are. Instead of using a pandemic to prop up the oil industry, the administration should be looking to conserve our public lands for future generations.”
Oil industry players have long sought to reduce royalty rates for publicly owned oil and gas. Two years ago, a committee created by Interior Secretary Ryan Zinke and stacked with industry officials recommended dramatically slashing offshore royalty rates from 18.75% to 12.5%. A federal judge found the panel was so stacked with industry officials that it violated the law, ruling the administration could not act on the panel’s recommendations.
Federal royalty rates for producing oil and gas on public lands are much lower than those charged by leading oil-producing states. Texas and New Mexico charge rates of up to 25% and 20%, respectively, compared to the 12.5% federal rate. Over the last five years, taxpayers could have received more than $10 billion had higher onshore royalty rates been in place.
Learn more:
- Trump to host Big Oil execs at White House to discuss market slump [Reuters]
- Shale Producers Spilled $2.1 Billion in Red Ink Last Year [IEEFA Report]
- The Drilling and Mining Industry Wishlist [Center for Western Priorities]
- America’s Public Lands Giveaway [Center for Western Priorities]
- Dashboard: Oil and gas leasing on public lands [Center for Western Priorities]
For more information, visit westernpriorities.org. To speak with an expert on public lands, contact Aaron Weiss at 720-279-0019 or aaron@westernpriorities.org. Sign up for Look West to get daily public lands and energy news sent to your inbox.
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