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Recent data show that oil, gas, and coal companies throughout Wyoming have continually failed to pay production taxes on time. In the past decade, companies failed to pay $97.7 million on time. Over that same period, delinquency increased by over 1,700%, becoming the new industry norm.
Delinquency is particularly common for coal companies. In a state where a failing coal economy is already hitting communities hard, tax delinquencies cause local governments to work under-budget and under-prepared. As Wyoming communities offer reduced tax payment plans to coal mines in order to try and keep the industry afloat, less money goes toward statewide education and fundamental public services.
Tax delinquencies are just another way that mineral extraction companies aren't giving taxpayers their fair share. Now taxpayers are getting ripped off by tax delinquencies, incredibly low bonding rates for oil and gas wells that leave taxpayers on the hook for up to 99% of damages, extremely outdated federal royalty rates, and a leasing process that allows extraction companies to lease land for as little as $1.50 an acre. It all points to a desperate need to re-envision mineral extraction industry regulations.
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I think, frankly, it’s going to cripple the bureau for a long time... it will result in decisions that are more political than they are resource-based."
