From Center for Western Priorities <[email protected]>
Subject Look West: Udall & Grassley propose 50% increase for royalties on public lands
Date December 3, 2020 2:59 PM
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** Udall & Grassley propose 50% increase for oil and gas royalties on public lands
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Thursday, December 3, 2020
California oil and gas operations. Photo by John Ciccarelli, BLM ([link removed]) .

A pair of U.S. Senators has introduced legislation ([link removed]) to increase royalty rates for oil and gas production on public lands by 50 percent. New Mexico Senator Tom Udall and Iowa Senator Chuck Grassley announced their intent in an opinion piece in the New York Times ([link removed]) earlier this week, calling attention to the fact that current royalty rates have barely budged in the last hundred years, resulting in an "outrageous giveaway ([link removed]) " to Big Oil, as Grassley says.

According to the Congressional Budget Office, the proposed increase would raise $200 million ([link removed]) in federal revenue over the next 10 years as it is phased in, with an equivalent amount going to the states where the oil or gas is being extracted. Many states already collect a much higher royalty rate for extractive activities—the current federal royalty rate of 12.5 percent is half what it is in Texas.

Grassley and Udall said in their op-ed ([link removed]) , “As senators from different parties, we have our share of policy differences. In this case, we agree that oil and gas companies should pay fair market value for the public resources they extract and sell. They aren’t doing that now — not even close — and the American public is the big loser.”
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** Senators Grassley & Udall propose 50% increase for oil and gas royalties on public lands
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