WASHINGTON, D.C.– Representative Edward J. Markey (D-MA), a senior Member of the House Energy and Commerce and House Resources Committees, reacted today to record high prices for oil and gasoline by calling for immediate action to suspend royalty relief for big energy companies drilling on public lands.  The Democrats’ “Royalty Relief for American Consumers Act of 2006” would require oil and gas companies to pay royalties to the federal treasury for drilling on public lands. Right now, taxpayers stand to lose at least $20 billion on oil and gas produced from federal lands and possibly as much as $80 billion over the next 25 years according to a recent Government Accountability Office Report.

“The American people expect leadership from the White House and the Congress in creating an energy policy that reduces energy costs for consumers and curbs our nation’s dependence on foreign oil, but right now the Republican leaders are wallowing in an oil slick and cannot fly,” said Rep. Markey.

Markey explained, “At a time when oil and gas prices are through the roof and big oil companies are reporting record profits, we must act to ensure that American taxpayers receive the money they are owed by big oil and gas companies for the privilege of drilling on land owned by the American people. It is time to end the Bush Administration’s policy of ‘leave no oil company behind’ while leaving American consumers holding the bill.”

Rep. Markey also noted that he had requested that Rep. Richard Pombo (R-CA), Chairman of the House Resources Committee which has jurisdiction over oil and gas drilling, to schedule a hearing on the bill: “In a February New York Times article, Rep. Pombo was quoted as saying ‘I don't think there is a single member of Congress who thinks you should get royalty relief at $70 a barrel’ for oil.* The price of oil  rose to $73 today, yet Chairman Pombo has not even scheduled a hearing on my bill to eliminate the inexcusable practice of subsidizing drilling by oil companies who are reaping record windfall profits. How high will these record oil prices have to climb before this Republican Congress decides to take action to put energy consumers ahead of energy companies?”

Rep. Markey noted that responsibility for the failure of the federal government to protect consumers also comes back to the White House.  He explained, “The Bush Administration has presided over a failed national energy policy that’s given billions in tax breaks, royalty-free drilling on public lands, and special interest regulatory subsidies to ExxonMobil and other giant oil companies.”

H.R. 4749, the “Royalty Relief for American Consumers Act of 2006” was introduced on February 14th and was originally  sponsored by Democratic Reps. Markey, Miller, Waxman, Maloney, Emanuel, Grijalva, Pallone and Inslee. This legislation would prevent royalty relief on new leases when oil and gas prices spike up and instructs the Secretary of Interior to seek to renegotiate current leases which provide royalty relief regardless of how high prices soar. On February 15, 2006, the eight Representatives wrote Resources Committee Chairman Pombo to request a hearing and a markup of H.R. 4749.  No response to that request has been received, and no hearing on the bill has yet been scheduled. Democrats have also proposed energy bills to increase research for alternative fuels and hybrid and hydrogen fueled vehicle technologies. 

For more information on Rep. Markey’s work on energy policy along with copies of the bill and the letter to Rep. Pombo, check out http://markey.house.gov/

*Edmund L. Andrews. “U.S. Has Royalty Plan to Give Windfall to Oil Companies.” New York Times, February 14, 2006.

 Copy of H.R. 4749 - The Royalty Relief for American Consumers Act (31.10 KB)
 Copy of Hearing Request Letter to Chairman Pombo (148.83 KB)