Oil Companies forced to pay fair share, Dems win in a walk

[twilight_sailing]

Interior Department raises oil and gas royalties
Associated Press

WASHINGTON - The Bush administration is taking steps to try to calm the furor in Congress over lost royalty payments on Gulf of Mexico oil and gas drilling as a result of a government mistake.

The Interior Department announced a sharp increase in the royalties that will have to be paid on future deep-water drilling leases in the Gulf.

Oil companies will have to pay the government 16-point-seven percent instead of 12.5 percent under any new lease agreements. The department estimates that will bring in an additional four-point-five (b) billion dollars billion over 20 years.

The move yesterday was widely viewed as an attempt to placate lawmakers. They've been sharply critical of the department for its failure to get oil and gas companies to renegotiate flawed 1998-1999 leases that allowed companies to avoid royalty payments even when making record profits with current high oil prices.

etc.
http://www.ledger-enquirer.com/mld/ledgerenquirer/news/local/16426433.htm


I'd like to see the Dems pursue this further and try for 20%. Granted, offshore drilling is expensive but since we the taxpayers own vast mineral rights, we should be able to negotiate a very good deal for ourselves.

[jpak]

1. It's OUR oil - not theirs - or Kay Bailey Hutchinson's...

That money should (and probably will) go to alternative energy and conservation programs.

Fuck 'em...

[Norquist Nemesis]

2. Caveat: "under any NEW lease agreements"

How many of those are they projecting? Also, it averages out to $225 million per year over 20 years. How much were those quarterly earnings last year again?

[twilight_sailing]

3. Good point.

[RB TexLa]

4. Then the leases should be redone too!

And Governor Blanco should demand Louisiana's fair share and if not let America see what $150 a barrel oil feels like. NO leases, and 12 month long inspection of all ports an petroleum related facilities in the state. Put them on their knees and make them beg.

[zbdent]

5. Point out to people that, if the oil companies didn't get their tax break in 2005

and paid their taxes on their profits, maybe the "everyday people" affected by the "Alternative Minimum Tax" would no longer have to fear that ... since the tax collections on the windfalls would probably cut wayyy into the deficit ...