Losing O&G Royalties

neffa3

Well-known member
Joined
Apr 17, 2015
Messages
3,459
Location
Wenatchee

VikingsGuy

Well-known member
Joined
Aug 2, 2017
Messages
4,649
Location
Twin Cities
Ridiculous. If they were fixed fees (e.g., $4/barrel) then allowing an adjustment down during low price points could make some sense and is quite common in B2B royalty agreements. But since they are percentage based they already "float" up and down with the price. Maybe a tiered pricing to allow for adjustment during big swings (e.g., 12% default, 4% when below $30/barrel, 15% when above $70/barrel) would also make some sense in a B2B arrangement, but to drop to 0.5% and to let the payer decide is bizarre.
 

Big Fin

Administrator
Staff member
Joined
Dec 27, 2000
Messages
14,380
Location
Bozeman, MT
Given much of that royalty goes to state and local governments, the BLM leadership is writing rebate checks to the O&G industry that is drawn on state and local government funds. Wasn't their some popular meme about "spending the other person's money?"

Wish I could say I was surprised. The selective manner by which welfare/socialism chips are doled out to "friends of friends" is hard to comprehend.
 

Ben Lamb

Well-known member
Joined
Aug 6, 2010
Messages
11,683
Location
Helena
Meanwhile, this is what happens when you try to upload comments to the BLM's e-planning website. This was yesterday, May 21st. Comments were due on the Draft SEIS' on Sage Grouse. Those plans encompass around 40-50 million acres of public land that are currently being given away to O&G companies for pennies on dollar in terms of lease price, and now they get to decide what to pay America for the O&G they produce.

Getting pretty tired of this winning.

1590164679779.png
 

Mako

Member
Joined
Apr 8, 2020
Messages
54
Ridiculous. I'm not sure how it works if they are extracting oil or gas on BLM land, but if they're going to be given a big break like that, I hope there is a mandate requiring them to maintain the land.
 
Top