(04\/05\/2011)<\/p>\n
Katie Howell, E&E reporter<\/p>\n
A group of House Democrats today offered a measure that would clamp
\ndown on a controversial offshore drilling royalty-relief provision.<\/p>\n
At issue in the legislation from Rep. Ed Markey (D-Mass.) and others is
\na royalty-waiver program that allows some oil companies to reduce or
\neliminate their royalty payments on federal drilling leases until they
\nhave recouped their investments.<\/p>\n
Lawmakers initially approved the program in 1995, when oil sold for $18
\na barrel and deepwater drilling was considered unprofitable without
\ngovernment help. Suspended payments helped bring about a boom for the
\nindustry in the late 1990s, but the subsidies, which were expanded by a
\nbroad 2005 energy law, continue today despite escalating crude oil
\nprices. The Government Accountability Office says the loss of future
\nroyalties could range from $20 billion to $53 billion depending on the
\nprice of oil.<\/p>\n
“The biggest oil companies are already getting 100 year-old tax breaks
\nto sell $100 a barrel oil to make $100 billion a year in profits,”
\nMarkey said in a statement. “Oil companies don’t need a $53 billion
\nwindfall courtesy of American taxpayers that increases our national
\ndeficit.”<\/p>\n
Today’s measure is not the first attempt to reform the royalty-relief
\nlaw. Markey and other Democrats have introduced similar bills in
\nprevious Congresses, and similar language introduced as an amendment to
\nthe first House GOP spending bill this year failed.<\/p>\n
But the new bill comes as Democrats ramp up their criticism of GOP
\nresistance to cutting oil industry tax breaks as they slash other areas
\nof federal spending (E&E Daily, April 5).<\/p>\n
“The Republican plan to cut the budget? Continue to cheat taxpayers out
\nof billions of dollars owed by the big oil companies. That’s not much
\nof a budget-cutting plan,” Rep. George Miller (D-Calif.), a co-sponsor
\nof the measure, said in a statement. “It’s time that we hold giant oil
\ncorporations accountable for the right to use the public’s resources.
\nOil companies shouldn’t be drilling for free, and in a time of rising
\ngas prices, we need to close this $50 billion loophole.”<\/p>\n
The oil industry is opposed to such reforms, saying it already pays
\nbillions to the federal government in other royalties, taxes and fees.<\/p>\n
Joining Markey and Miller in introducing today’s measure are Democratic
\nReps. Rush Holt of New Jersey, Jim Moran of Virginia, Maurice Hinchey
\nof New York and Lois Capps of California.
\n Special thanks to Richard Charter<\/p>\n","protected":false},"excerpt":{"rendered":"
(04\/05\/2011) Katie Howell, E&E reporter A group of House Democrats today offered a measure that would clamp down on a controversial offshore drilling royalty-relief provision. At issue in the legislation from Rep. Ed Markey (D-Mass.) and others is a royalty-waiver program that allows some oil companies to reduce or eliminate their royalty payments on federal … Continue reading E&E: House Dems float royalty-reform bill<\/span>