GOP reduces future oil company royalties worth billions.

[JohnWxy]

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=115x69790





Tucked into a massive energy bill that would open the outer continental shelf to oil drilling are provisions that would slash future royalties owed to the federal government by companies prospecting in Rocky Mountain oil shale deposits.

Sponsored by Rep. Richard W. Pombo (R-Tracy) and passed by the House earlier this year, the bill would amend an existing requirement that the federal government receive a "fair return" from oil companies that hold oil shale leases on public lands. Instead, Pombo's bill, modeled after a Canadian law, would reduce royalties from the customary 12.5% of annual revenue to 1%.

Further, the bill could cut the reduced rate by as much as 80% if the price of oil fell. Over many years of oil production, the royalty discounts could amount to tens of billions in lost federal receipts, said James T. Bartis, an analyst at the Rand Corp. who wrote a widely used study of the economic prospects of the developing oil shale industry.

[louis-t]

1. It's like they're bankrupting the nation on purpose.

[havocmom]

2. Corporations do not recognize nation states. They are destroying all

Their puppets make laws that say nations cannot make laws which impede trade. Well, that puts the corporations in charge of everything when you boil it all down.

[LouisianaLiberal]

4. That is the point.

There is a reason why the Repugs meet weekly with Grover Norquist.

Only a small fringe element would vote for them if they spoke of their real agenda: eliminate all entitlement programs and privatize everything. Because they can't actually speak of the real agenda, they will break the government through the back door.

Theirs is truly an evil agenda. Obviously of course accompanied by massive incompetence and an amoral sense of their own entitlement. In other words, they are fools.

Their popularity is now so low, that perhaps some brave Dem can begin the arduous task of confronting them with their real agenda.

[razors edge]

3. The last offical act

of any government is to loot the treasury.

[twilight_sailing]

5. Would the oil companies lower gas prices before an election

to help keep their friends the Republicans in power?

Sure they would. And they have.

Imagine that.