Friday, June 21, 2013

oil royalty rates screwing US taxpayers

Since the 1920's the US government has not raised the royalty for oil lease on federal land.  States charge more than we do.  This rate can be changed at any time by Presidential Directive.  This is a hugh loss to the public and the nations debts.  At $331 million a day in profits, the oil companies could probably spare it.  The market looks to be average of around 18%.  They will gladly pay 25%, look at the Texas rate.
Write or call the White House, ask the President to raise this rate.

Coal is another issue, I don't know the rates or how they could be changed, but recent news stories indicate the coal industry is cheating in their tons mined royalty reports.  They do it by selling the coal to a middle man who is just another room in the mine office before selling it to your utility or China, turns out more coal is sold by the middlemen than by the mines.  Again, the taxpayer is getting screwed.

Next week Obama is suppose to announce some energy and environmental decisions and plans.  I look on the coming week with dread.  I think he is going to try to please everyone, give the right and the oligarchs some of their big items, and act tough on some things for the green movement.  The GOP will not work with him on one damn thing even if he caves to all these issues, I don't think he understands that after 4.5 years.

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