ONRR Proposed Rule: Consolidated Federal Oil and Proposed Gas and Federal and Indian Coal Valuation Reform
The Administration is at it again. Recently, the Department of Interior (DOI) released a proposed rule that would hit coal producers who have transportation businesses or are captive to one power plant. The rule seems aimed at creating unbearable uncertainty that threatens to strand capital and further decrease production.
The current royalty valuation guidelines provide significant benefit to taxpayers and certainty for producers. This is yet another attempt by the Administration and their anti-energy supports to stop American energy production. Tell the Administration that long-standing rules governing royalty valuation should stay the same and the proposed rule is the wrong way to go…CLICK HERE to add your comments.
The proposed rule:
1. Creates significant uncertainty;
2. Gives the Secretary of the Interior too much power;
3. Creates an unlevel playing field for coal producers compared to coal transporters; and
4. Discourages federal energy production.
Campbell County Rep. Norine Kasperik recently highlighted many of the problems with the proposed rule in “The Hill“:
“The anti-fossil fuel crowd regularly invokes the same tired argument in a failed attempt to prove their point – energy producers are not paying their fair share to taxpayers and should therefore have their taxes, royalties and leases raised. Yet, the fallacy of this argument should be noted. Those opposed to energy development want taxpayers to receive no benefit from America’s resources.”
Rep. Kasperik is right, so tell the Administration that the current rule on royalty valuation should stay and the proposed rule should be withdrawn.
Comments are due by May 8, 2015.