Among the things that has made this country therefore successful is its bounteous natural resources. Among those resources are huge stores of mineral resources. Each year, a huge volume of natural gas and oil is produced in this country. The oil and gas companies often don’t own the land producing these resources; rather, they pay oil and gas royalties towards the landowners. Thus each landowner reaches retain ownership while leasing the development rights and enjoying the advantages of a steady royalty income.
Many of the lands being developed are federal countries, and the U. S. Department from the Interior is the recipient of those royalties. This includes both onshore and just offshore leases. Unfortunately, problems have developed with the federal agencies responsible for dealing with these leases. A great number of the federal government employees running the leasing plan have been found to socialize plus accept gifts from the oil and gas businesses with which they conduct official company.
There has recently been a bill introduced that could attempt to fix this conflict of interest. Nick Rahall (D-WV), the chief of the House Energy and Natural Resources committee, would like to pass a bill to overhaul the royalty system in the federal level. The bill they have introduced would improve planning the development of offshore energy and create a new federal government agency.
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This agency would consolidate energy programs now carried out simply by two separate agencies, as well as overseeing leasing mineral rights, enforcement of those leases, and the government’s royalty curiosity. The bill would attempt to remove conflict of interest by requiring yearly certification of all employees that they are in compliance with ethics laws and regulations. Some other goals of the bill include pressuring oil and gas companies to develop leases faster, while improving the royalty selection process.
Should this bill pass, it would not directly affect the private landowner who benefits from oil and gas royalties. It really is aimed primarily at a more streamlined, less conflicted use of these royalties on federal lands. However , an individual might benefit should this legislation be passed. First, if the coal and oil companies are pressured to develop leases more quickly, there may be less chance of leased property sitting unexplored or underutilized. 2nd, privately held land may become more appealing as more strings are attached to the use of federal government lands. It remains to be seen what final form the bill might take and how it is going to affect all those involved in the production associated with minerals.