Skip to comments.Democrats look to close lucrative Gulf drilling loophole (you pay more, Hussein still in contempt)
Posted on 02/17/2011 8:53:36 AM PST by Libloather
Democrats look to close lucrative Gulf drilling loophole
By Bruce Alpert, Times-Picayune
Published: Thursday, February 17, 2011, 8:00 AM
Some House Democrats say Republicans who want to reduce the federal deficit should look at closing a 1995 loophole that allows oil companies to drill without paying royalties at some locations in the Gulf of Mexico.
Changing the drilling rules, three House Democrats said Wednesday, could save $1.5 billion this year and $53 billion over the next 25 years. They are proposing to accomplish that with an amendment to a pending House Republican bill that would cut $60 billion in federal spending over the last seven months of the 2011 fiscal year, which ends Sept. 30.
A vote on the Democratic amendment is expected today.
"Right now, the Republican leadership is looking to cut millions of meals for our nation's senior citizens, while defending these free lunches for BP, Exxon and other multibillion-dollar corporations," said Massachusetts Rep. Ed Markey, the top Democrat on the House Natural Resources Committee. "We all know we need to make smart cuts to the deficit, but this is the kind of special interest loophole that should be closed before we open attacks on programs for the poorest Americans."
(Excerpt) Read more at nola.com ...
Make 'em pay even more for gas. Brilliant!
I'll have a cheeseburger with fires, hold the pickles. Now, why is it that the 'government' doesn't provide me with meals? This is age discrimination!
Deep Water Royalty Relief Act (S.395)
In 1995, both houses of Congress passed and President Bill Clinton signed the Deep Water Royalty Relief Act (S.395), which granted a royalty “holiday” to oil and gas companies drilling in government-owned deep waters in the Gulf of Mexico for leases sold between 1996 and 2000. Specifically, under the program, companies would not have to pay the normal royalties except when market prices reached $34 a barrel for oil and $4 per thousand cubic feet for natural gas. At the time, oil and gas prices were fairly low, and supporters of the bill argued it would provide an incentive for petroleum companies to drill for oil and natural gas inside the U.S.
Since Oil and Gas has remained and is expected to long remain above these thresholds, no royalty relief is given.
I loathe Ed Markey.
I have yet to understand the liberal mindset that declares increased taxes is a savings... These leftists are intentionally clueless.