Interior Deptartment Releases New Regulations for Royalties from Fossil Fuel Production on Public Lands

Interior Dept. Releases New Regulations for Royalties from Fossil Fuel Production on Public Lands

 

On June 30, the Department of the Interior published the final version of its new regulatory framework for collecting royalties from fossil fuel extraction projects on public lands. The revised system will assess owed royalties based on the first sale from the original extractor to an independent buyer. The changes were prompted by allegations that fossil fuel companies were selling fuels to their own subsidiaries or an affiliated company in order to artificially lower the products' market value and, in turn, their federal royalty payments. Interior Secretary Jewell commented that the new rules were "urgently needed to better align our regulatory framework with a 21st century energy marketplace . . . [and ensure] that the American taxpayer receives every dollar due for the production of these domestic energy resources."

 Department of the Interior Press Release,

The Hill

Reuters

This may lay a path to close the loopholes for private royalty owners as well.

Views: 554

▶ Reply to This

Replies to This Discussion

Permalink Reply by Albert Russell on July 5, 2016 at 8:11am

Great news for all privet royalty owners.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on July 5, 2016 at 1:26pm

Albert,

       This would be great news if the Federal Government declared all private landowners would be treated the same as "fossil fuel extraction projects on public lands".

The problem in the US is that State and Federal law writers, write laws to protect themselves but not US Landowners. We are left to be stolen from.

Yes, Chesapeake sells to themselves as Chesapeake Energy Marketing Inc which is now operating under another name. This is a bogus below market value sale. This action violates our ALOV & SURE leases.

Who will enforce the laws, and who will write laws to protect US Landowners?

Lets ask Donald Trump what he thinks. It's time doing things the same old way in the US is changed for the better. All landowners and Taxpayers in the US would benefit.

All those at the top would share less of what they don't own, Our land &  Our minerals.

Permalink Reply by Jon on July 5, 2016 at 4:53pm

Why would they not think to include private land owners in this?

Permalink Reply by Mtneer on July 5, 2016 at 2:59pm
Can only forsee how this clause will, or already has been, broken. O&G company will have an implied agreement with the independent buyer so the purchase is below market value and then the difference is made up at the backend of the deal. It's simple accounting and semantics.
0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on July 6, 2016 at 3:00am

Mtneer,

      This is why the government uses Auditors in the IRS and other areas where money is collected in the form of taxes.

You must Audit to keep corporations and some citizens honest. The IRS has more than likely laid off a large number of folks that can be employed auditing these oil and gas deals along with military contracts. They would pay their own salary with the money they would save the US government and citizens.

You might think this would be impossible, but in the 80s the US gov was crying in Readers Digest that they couldn't figure out who they were paying so they just kept sending the checks.

If you or I were running the show, we would have stopped all checks being sent out until the Payee notified us in writing why we should continue paying them. Problem solved with very little effort. The geniuses just kept sending checks to those who didn't deserve them in order to keep things as they were. That's why we have a larger deficit than we should have today.

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service