WASHINGTON, D.C. – Tens of billions of dollars worth of royalties that oil companies have paid the United States government on production in the Gulf of Mexico were thrown into question this week by a surprising federal district court ruling. U.S. District Court Judge Patricia Minaldi ruled that the Interior Department’s Minerals Management Service could not order Kerr-McGee Oil and Gas (now owned by Anadarko Petroleum) to pay royalties solely because oil and gas prices rose to specific thresholds.
Representative Edward J. Markey (D-MA), a senior member of both the House Natural Resources and Energy and Commerce Committees, was the primary author of legislative language passed by the House in January to collect billions in unpaid royalties on faulty 1998-99 leases and use the funds to invest in alternative energy technologies.
Rep. Markey said, “This ruling and the lawsuit brought by Kerr-McGee have the potential to set a dangerous precedent that could lead to American taxpayers losing up to $60 billion they are rightfully owed by big oil companies for the privilege of drilling on public land.
“The Department of Justice must vigorously defend the interests of the American people in this case. At a time when oil prices are hovering close to $95 per barrel, it is unconscionable that Anadarko would continue to push forward with this brazen attempt to rob the American people in broad daylight.
“At the same time, Congress must move forward to approve the House-passed language that would force the oil companies to renegotiate the 1998-1999 leases so that royalty-free drilling is not allowed. There is absolutely no justification for allowing oil companies to drill for free on the public’s lands with prices at these heights. It is high time that the Senate agreed to accept the House proposal to end this rip-off. ”
| FOR IMMEDIATE RELEASE November 1, 2007 |
CONTACT: Jessica Schafer, 202.225.2836 |
