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Trump’s News BUSINESS 13
Trump Administration
Cuts Oil, Gas Fees in
Hundreds of Cases
By Eric Mack | newsmax
“Any applications we the administration, said the
receive are reviewed by case showed Interior
career experts in BLM's officials were allowing
State Offices following “royalty dodgers” to benefit
longstanding procedures from the relief program at
a n d i t s l a w s a n d the expense of local and
regulations," Tollefson said, s t a t e g o v e r n m e n t s
adding that the relief will be dependent on natural
temporary. resource revenues.
The Trump administration The Associated Press. Oil and gas royalty fees “It seems to us, after oil
has awarded energy nationwide totaled almost quickly rebounded to nearly
companies hundreds of In the Gulf of Mexico, five $3 billion last year. Half the $40 a barrel, the oil
breaks on payments for oil companies were deemed money is distributed back to corporations are taking
and gas extraction from U.S. eligible for royalty relief and the states where the oil and advantage of an opportunity
lands and the Gulf of Mexico 12 applications from those gas was extracted. not to pay their fair share of
during the coronavirus companies have been the development of our
pandemic, according to a granted, according to Karla Interior Department natural resources," he said.
government database and Marshall with the Interior officials also have approved
federal officials. Department's Bureau of requests to suspend rental An American Petroleum
Safety and Environmental payments on at least 375 oil Institute spokesman said
The temporary breaks on Enforcement. The agency and gas leases totaling the industry group has not
royalty and rental payments refused to provide details on almost 320,000 acres. been involved in the
are intended to help the sizes of the leases, when Rental fees bring in far less individual relief requests
companies with workforce the breaks were granted and revenue than royalties — from companies.
problems or other issues the names of the companies $1.50 per acre for the first
after government-imposed involved. five years of a lease and $2 “While energy markets
shutdowns due to the p e r a c r e f o r e v e r y appear to be stabilizing and
pandemic caused fuel AP reported in late May subsequent five years, demand continues to
d e m a n d t o p l u m m e t t h a t t h e T r u m p according to the Interior improve, full recovery from
worldwide. administration had begun Department. this global pandemic will not
approving royalty relief happen overnight and many
Critics argue the breaks on requested by energy Among the companies industries remain impacted.
government fees are companies. The value of the receiving a royalty break We are no different, and
unnecessary industry breaks will depend on how was Fort Wort, Texas-based challenges remain in the
handouts that in some cases much oil and gas the Finley Resources, on a weeks and months ahead,”
are benefiting companies companies extract. 5,700-acre energy lease in said petroleum institute Vice
with histories of environ- U t a h , a c c o r d i n g t o President Lem Smith.
mental violations or past Companies typically pay government records. In
failures to pay royalties. the government 12.5% fiscal year 2014, federal The Democratic chair of
royalty payments on t h e H o u s e N a t u r a l
officials responsible for
Prices for oil have revenues from oil or gas Resources Committee,
e n f o r c i n g r o y a l t y
rebounded in recent weeks, extracted from public lands. Arizona Rep Raul Grijalva,
requirements collected
topping $39 a barrel for West The administration has cut last month requested an
$81,952 in penalties from
Texas crude on Wednesday that rate, in some cases to investigation into whether
the company for failing to
after dropping below $13 in as low as 0.5%, on leases in the requests for industry
submit production reports
l a t e A p r i l . I n d u s t r y U t a h , W y o m i n g a n d relief were being properly
for multiple leases from
representatives say a full Colorado. h a n d l e d . G r i j a l v a
2010 to 2012.
recovery is still far off. spokesman Adam Sarvana
Current crude prices and
The company did not said the Government
The administration has company operating costs
immediately respond to a Accountability Office
now approved at least 117 are used to determine how
telephone message seeking accepted the request but
applications for royalty much royalty rates should
comment. there are no results yet.
reductions on U.S. lands in be reduced, said Chris
three Western states, Tollefson, a spokesman for Jayson O'Neill with the
according to Department of Interior's Bureau of Land Western Values Project, an
Interior data analyzed by Management. advocacy group critical of
