Dear Representative,
Taxpayers for Common Sense Action (TCS Action), a non-partisan budget watchdog organization, urges you to oppose H.R. 4761, the Deep Ocean Energy Resources Act. TCS Action is concerned with several provisions in the bill which will alter the federal-state revenue share for oil and gas royalties, provide additional royalty relief for oil shale and create a new entitlement for oil and gas lessees. Overall, this legislation will cost taxpayers billions in lost revenue. With oil giants reporting all-time record profits, there is no need to further pad their pockets with these additional incentives.
Taxpayers for Common Sense Action is alarmed at the provisions in the Deep Ocean Energy Resources Act which change federal-state revenue sharing provisions on royalty payments. These provisions will alter the current percentage share federal taxpayers receive on the extraction of oil and gas from federal waters. In a recent letter to Congress and in testimony before the Resources Committee, the Administration raised similar concerns estimating these provisions to cost federal taxpayers $69 billion in lost revenues from oil and gas royalties over 15 years. Long-term preliminary estimates from the Mineral Management Service point to a potential decline of more than $460 billion dollars over the next 60 years.
Another provision TCS Action is concerned with is Section 17 which begins a new entitlement for lessees. For instance, this provision would enable onshore oil and gas lessees to be compensated if the Bureau of Land Management (BLM) misses the ten day deadline for lease consideration established in Sec.19 of the bill. Due to the large increase in drilling permit applications, the BLM reported that it had on hand over 2400 permit applications for more than 60 days. Ten days is an unreasonable time allotment and would entitle companies compensation for a breach of contract if the time frame is not met. In addition to these egregious provisions, the bill provides decreases in shallow water royalties payments and provides additional relief provisions for the oil shale, tar sands and other unconventional fuels.
With the federal debt mounting and oil and gas prices nearing record highs, providing production incentives and altering the federal earnings on our natural resource royalties, does not make fiscal sense. We urge to vote against H.R. 4761 and return some fiscal sanity to our nation’s energy policy. If you have any questions, please contact Autumn Hanna at (202) 546- 8500 x112.
Sincerely,
Jill Lancelot
President / Co-Founder
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