BLM hands drillers royalty cuts

Wednesday, May 20, 2020
Arizona Oil and Gas Conservation Commission

From continuing lease sales to reducing royalty rates, the Trump administration is encouraging unnecessary oil and gas production. The coronavirus pandemic has caused a decrease in demand globally and prices have dropped as a result. Over the past two months, producers have scrambled to find storage options, as available storage filled up. “Not only does this boneheaded move shortchange American taxpayers and Western states at the worst possible time, it incentivizes oil production during the worst oil glut in history,” said David Jenkins, president of Conservatives for Responsible Stewardship.

Interior Secretary David Bernhardt promised to grant royalty relief for companies that request it and over 1,000 applications have been submitted to BLM offices in the West, according to documents reviewed by E&E News. However, only a few of the requests are visible in the BLM's public database, and Interior officials have not released more information about the requests despite scrutiny. In Utah, all 76 submitted applications were accepted, decreasing royalties to as low as 2.5 percent from the standard 12.5 percent.

Reduced royalty payments mean that taxpayers are not getting a fair return for the extraction of public minerals. This is especially problematic for states that rely heavily on oil and gas revenue, such as New Mexico and Wyoming, whose budgets have already been hit hard by impacts of the pandemic.

Navajo Nation urges Grand Canyon to stay closed

As the number of coronavirus cases continues to spike on the Navajo Nation, President Jonathan Nez is urging the National Park Service to keep the Grand Canyon closed. The park shares its eastern border with the Navajo Nation, which has experienced the most coronavirus cases per capita in the U.S. "The Navajo Nation is blessed to be surrounded by natural beauty, including the Grand Canyon, Bryce Canyon, Chaco Canyon, and Canyon de Chelly, just to name a few. Our federal partners need to understand that we have a voice in how these parks impact our communities,” Nez stated
Quick hits

Oil services firm under federal investigation receives $6.8 million in coronavirus stimulus funds

Washington Post

Thousands of maskless visitors flock to Yellowstone as park reopens

The Guardian

Navajo president urges National Park Service to keep Grand Canyon closed as cases continue to rise

Grand Canyon News

Oil and gas companies ask for reduced royalty rates, Bernhardt delivers

Bloomberg | E&E News

Renewables on federal land created $660 million windfall

Bloomberg

Trump administration tests drilling demand with big New Mexico lease sale

Reuters

Public rebuts Alaska national forest logging, roadless exemption plan

Bloomberg

Quote of the day
In addition to a public health crisis, we face dual climate and nature crises, that threaten life as we know it. And these crises are interconnected... Protecting nature is about protecting humanity. It's just that simple.”
—Senator Tom Udall, on the importance of protecting 30 percent of America, Road to 30
Picture this

@BLMNational

The sapphire blue waters of this glacial cirque lake are fed by melting snows from the surrounding 13,000 foot peaks. The lake is located in the Handies Peak Wilderness Study area on #publiclands managed by
@BLM_CO#ArmchairAdventure #TravelTuesday
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