The People of America's Oil and Natural Gas Indusry

Energy Tomorrow Blog

deepwater-drilling  domestic-energy  energy-policy  offshore-drilling  royalties  technology-innovation 

Jane Van Ryan

Jane Van Ryan
Posted April 21, 2010

Two new studies commissioned by API illustrate the benefits of the 1995 Deep Water Royalty Relief Act. As we explained on Monday, the act purposefully created financial incentives for drilling in the deep waters of the Gulf of Mexico, and it led to new technologies and huge investments in the production of domestic oil and natural gas.

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domestic-energy  efficiency  royalties  technology-innovation  royalty-payments 

Jane Van Ryan

Jane Van Ryan
Posted April 13, 2010

The U.S. Interior Department yesterday announced that it will launch a nine-month study into royalty payments in other countries to determine whether U.S. royalty rates should be changed.

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deepwater-royalty-relief-act  domestic-energy  energy-policy  energy-production  energy-tomorrow  energytomorrow  mms34  offshore-drilling  royalties  royalty-payments 

Jane Van Ryan

Jane Van Ryan
Posted October 5, 2009

The U.S. Supreme Court today declined to consider an extremely important Fifth Circuit decision on royalty relief. This adds finality to the Fifth Circuit's unanimous decision that Congress, when it passed the Deepwater Royalty Relief Act, provided royalty relief based on volume, not price. 

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energy  energy-policy  revenue  royalties  royalty-in-kind 

Mark Green

Mark Green
Posted September 16, 2009

Today, U.S. Interior Secretary Ken Salazar announced that he would terminate the Royalty-in-Kind (RIK) program, which collected $6.6 billion in oil and gas deliveries in fiscal 2008, and is one of the government's largest sources of non-tax revenue. The program is an effective means of ensuring that the American people receive fair compensation for development of federal resources.

Terminating this straight-forward method of handling royalty payments runs the risk of raising administrative costs and adding additional layers of paperwork required to determine the value of oil and gas production. The Minerals Management Service itself noted administrative efficiencies brought on by the program, and pointed out that another benefit of RIK is the reduction in costly lawsuits tied to product valuation.

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