I received this statement from Raul Grijalva's office and wanted to share it here:
News From Representative Raúl M. Grijalva
7th Congressional District of Arizona
FOR IMMEDIATE RELEASE
February 15, 2006
Contact: Natalie Luna (520) 622-6788
Gas and Oil Companies Get a Sweetheart Deal from Bush Administration
Washington D.C. - It was made public this week that the Bush administration will allow oil companies to pump $65 billion worth of oil and natural gas from federal land and waters without paying any royalties to the taxpayers for the privilege. This royalty holiday will result in a loss to taxpayers of at least $7 billion.
Rep. Raul M. Grijalva released the following statement concerning this troubling discovery:
"The NY Times reported yesterday that, 'The federal government is on the verge of one of the biggest giveaways of oil and gas in American history, worth an estimated $7 billion over five years.'
"While average Americans feel the squeeze of energy prices that have shot through the roof, oil and gas companies are reaping unprecedented profits. Allowing private companies to take federal resources without paying any return to taxpayers is simply shameful. Taxpayers stand to lose at least $7 billion by 2011 and if an industry lawsuit on royalty holidays prevails, an amount closer to $35 billion, 'about the same amount that Mr. Bush is proposing to cut from Medicare, Medicaid and child support enforcement programs over the same period,' states the Times article.
"With a budget for 2007 that will cut $187 billion over five years from vital social programs while creating new record deficits, we cannot afford to subsidize this form of corporate welfare.
"While some of the royalty holidays stem from older leases, last year I offered amendments both in the Resources Committee and the Floor debate on the Energy Policy Act of 2005 to strike new royalty holidays for offshore deepwater drilling. President Bush himself said last year that, 'with oil at more than $50 a barrel...energy companies do not need taxpayers'- funded incentives to explore for oil and gas.' In spite of this statement and the Administration's alleged opposition to royalty holidays, they were nevertheless included in the bill as passed by Congress and signed into law in the summer of 2005, with the strong support of the President. Bush also admitted that the Energy Policy Act would do nothing to lower rising gasoline prices yet he still advocated for passage of the Act.
"I am a cosponsor of a bill that would end this sweetheart deal for rich corporations. The bill, entitled the 'Royalty Relief for American Consumers Act of 2006' would ensure that the taxpayers receive the billions of dollars in future royalty payments they are owed by big oil companies as payment to drill on public land and waters. This legislation would prohibit royalty holidays on any future oil and gas leases, call for a renegotiation of current leases, and prohibit companies that refuse to renegotiate from purchasing new leases.
"I urge the Administration and Republican majority to move forward in support of this Act in order to end the shameful giveaway of our public resources".
