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Markey: New Analysis Confirms Energy Bill Would Ensure Recovery of Oil Royalties

Press release: “At the request of Rep. Edward J. Markey (D-Mass.), a new analysis released [November 9, 2007] by the nonpartisan Congressional Research Service (CRS) found that legislative language in the energy bill currently being considered by the Congress would ensure that billions rightfully owed in oil royalties will be paid to American taxpayers regardless of the outcome of lawsuits by big oil. Congress is currently considering two energy bills passed by the House and Senate that would reduce oil dependence and cut global warming pollution. The current House energy bill contains the Royalty Relief for American Consumers Act, originally drafted by Rep. Markey, which would recover an estimated $10 billion in unpaid royalties from Gulf of Mexico oil leases granted in 1998 and 1999 that erroneously allowed for royalty-free drilling regardless of increasing oil prices…In the research memo, CRS notes the passage of Rep. Markey’s language in the current energy bill would ensure recovery of the royalties.”

  • “The letter says: “If Congress does wish to ensure that royalties on all leases issued pursuant to section 304 of the [Deep Water Royalty Relief Act] between 1996 and 2000 are limited by both price and volumetric thresholds, it could do so by passage of the proposed Royalty Relief for American Consumers Act of 2007 as it is currently worded in Sections 7501-7505 of H.R. 3221.”
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