What is a ‘fair return to taxpayers’ for hydrocarbon extraction?
Wyoming senators say new regulations intended to put coal, oil and natural gas companies out of business
by Pinedale Online!
July 2, 2016
On March 24, 2016 the Department of the Interior (DOI) launched what it called "a comprehensive review to identify and evaluate potential reforms to the federal coal program in order to ensure that it is properly structured to provide a fair return to taxpayers and reflect its impacts on the environment, while continuing to help meet our energy needs."
"The review, in the form of a Programmatic Environmental Impact Statement (PEIS), will take a careful look at issues such as how, when, and where to lease; how to account for the environmental and public health impacts of federal coal production; and how to ensure American taxpayers are earning a fair return for the use of their public resources."
The DOI documents related to this review can be found here:
Programmatic Environmental Impact Statement on Federal Coal Program
Below are statements issued by Wyoming senators Mike Enzi and John Barrasso regarding the proposed new regulations and their view of the impact it would have.
Enzi: New regulations are a sham aimed at attacking coal
Washington, D.C. – Today the Department of the Interior released final regulations aimed at increasing royalty fees paid on the extraction of oil, natural gas and coal from public lands. U.S. Senator Mike Enzi, R-Wyo., released the following statement in response:
"These regulations are a sham designed by the Obama Administration in order to raise prices and put coal, oil and natural gas companies out of business," Enzi said. "The Administration doesn’t care as much about ensuring taxpayers get a fair return as it does about ending coal. There won’t be a boon for taxpayers if the coal industry isn’t around to pay royalties. Instead of leading an attack that will destroy jobs and raise energy prices, the Administration should be working to help support innovation in the coal industry."
Barrasso Statement on Interior’s Final Energy Valuation Rule
WASHINGTON, D.C.— U.S. Senator John Barrasso (R-Wyo.) released the following statement in response to the U.S. Department of the Interior’s Office of Natural Resources Revenue (ONRR) final valuation rule on coal produced on federal and Indian lands, and oil and natural gas produced on federal lands and waters.
"Today’s new valuation rule is not about closing any loophole—it’s about targeting for ruin American energy jobs. President Obama has sought to destroy the mining and use of coal from day one, regardless of the consequences for mining families, the communities they support and the consumers they supply.
"If the Obama administration was truly concerned about wringing every dollar for the public from our nation’s energy resources, they would make it easier for American producers to access international markets. Instead, they have worked to block access to global markets for coal, and have moved at a glacial pace in approving natural gas exports.
"Like many of the hastily proposed rules in their regulatory scheme, this one will face fierce opposition in Congress and in the courts."