Billion dollar Big Oil leasing loophole under attack
WASHINGTON, D.C. – An amendment by Rep. Earl Blumenauer (D-Ore) to curtail royalty-free leases was defeated in the House of Representatives by a vote of 179-229.
Created in the late 1990s, royalty free leases exempt companies from paying royalties on certain oil and gas leases acquired in the Gulf of Mexico. Since it was established, this giveaway has resulted in more than $11 billion in lost revenue.
Friends of the Earth Climate and Energy Campaigner Lukas Ross issued the following statement in response:
At a time when Big Oil is more profitable than ever, the royalty-free leasing loophole is an unconscionable giveaway to some of the richest companies that have ever existed. If Congress wants to talk seriously about reducing deficits and controlling spending, it should start by ending a subsidy that has already cost taxpayers upwards of $11 billion in lost revenue.