US House Energy Bill Aims to Press Companies on Drilling Fees

Oil and natural gas companies would fall under serious pressure to rework flawed Gulf of Mexico drilling leases if an energy bill crafted by U.S. House Democratic leaders is approved next week.

House Ways and Means Chairman Charles Rangel, D-N.Y., on Thursday introduced the energy bill to deny large energy firms billions of dollars worth of tax and production incentives.

The bill is a priority for the House’s new Democratic leaders and will be considered on the House floor next week as part of House Speaker Nancy Pelosi’s 100-hour agenda.

The legislative proposal includes provisions that would push energy firms to fix 1998 and 1999 drilling contracts that fail to require companies drilling in the Gulf’s submerged federal lands to pay royalties to the federal government.

Dow Jones Newswires