The state and counties of Wyoming get to pick up the difference to the tune of $50 million thanks to the reduction in coal royalties. Add in the 50% cut in O&G royalties and the resource extractions counties are getting a major screw over with this provision in the BBB.
Higher severance and ad valorem payments are not expected to offset federal mineral royalty reductions, according to state financial forecasters.
wyofile.com
These rural areas either get to pay more in taxes or accept less in services. All the while, the operations in these rural counties still have the same impact on the local infrastructure.
If Americans want these resources, they ought to be willing to pay for the full costs incurred to bring these resources to market. Cutting royalties that are split with local governments is a huge kick in the crotch to these rural areas. But, Americans pay a fraction of a penny less for a gallon of gas.
So to the title of this thread: NO, everything is not OK for the folks like those in rural Wyoming and other places the rely on royalty splits to help keep critical infrastructure in place. When Congress cuts royalty rates to pay their political debts, it's really these rural counties who are writing the checks.