BLM says oil and gas operators should set their own royalty rates for public lands drilling.

May 28, 2020

State offices for the Bureau of Land Management (BLM) were instructed to allow oil and gas operators to set their own rates for royalties they pay to the government as part of their leases for public lands drilling according to a May 21, 2020 High Country News report.

High Country News reported that state BLM directors were emailed a document in which the national office said they should let oil and gas firms make those determinations. The document reportedly suggests a rate of 0.5 percent as opposed to the 12.5 percent fees typically paid by companies on oil and gas extracted from public lands.

The BLM did not immediately respond to a request for comment from about this document.

The report comes as some in the industry has been requesting that the Trump administration lower the fees, known as royalties, that companies have to pay the government in order to extract oil and gas on public lands.

Asked last month whether they would be implementing widespread royalty cuts, an Interior spokesperson told The Hill that companies that want such measures should apply for it through “established processes.”

“Entities who believe such relief may be appropriate to promote continued energy production and development can submit an application for relief to the appropriate bureau program,” the official said.

Based on the data that’s available so far, it looks as if every request sent to the government for royalty relief was granted. These 75 rate cuts were all in Utah.

What this means to you
State offices for the Bureau of Land Management (BLM) have been instructed to allow oil and gas operators to set their own rates for royalties they pay to the government as part of their leases for public lands drilling. In a document to state directors, the BLM national office reportedly suggests a rate of 0.5 percent as opposed to the 12.5 percent fees typically paid by companies on oil and gas extracted from public lands.

MIRATECH can help
Contact MIRATECH for stationary engine emission control on BLM lands.