Congress urged to close oil royalty loophole

WASHINGTON (Reuters) – House Democratic lawmakers on Thursday urged the Republican-controlled Congress to punish oil companies that won’t renegotiate faulty drilling leases issued by the government almost a decade ago that have allowed companies to avoid paying billions in oil and gas royalties.

The lawmakers want to block oil companies from getting drilling leases in new offshore areas unless they reach new terms with the government on the energy exploration contracts signed in 1998 and 1999.

“This land is owned by American taxpayers, and these oil companies are getting away with not paying for using it,” said Rep. Rahm Emanuel (news, bio, voting record), a Democrat from Illinois.

The lawmakers want the renegotiation provision put in legislation the House is scheduled to vote on this week that would open a small area in the Gulf of Mexico near the Alabama-Florida border to oil and gas drilling.

Reuters