US Interior scraps Bush research oil shale leases

WASHINGTON, Feb 25 (Reuters) – A Bush administration plan for demonstration oil shale leases will be scrapped because the proposal is flawed and royalties to the government are too low, Interior Secretary Ken Salazar said on Wednesday.

“If oil shale technology proves to be viable on a commercial scale, taxpayers should get a fair rate of return from their resource,” he told reporters on a teleconference.

Salazar also took issue with the size of the oil shale leases offered in January, which covered areas four times larger than six parcels currently leased for research.

Under Salazar, the department has been reversing moves made late in the Bush administration.

The department has canceled energy leases near national parks in Utah, and also has delayed a Bush proposal expanding offshore drilling until more input can be gathered.

Reuters