Back in 1995, Congress passed the Deep Water Royalty Relief Act that reduced the amount of royalties oil and gas companies had to pay. At the time, when gas prices were fairly low, the move was seen by many as an incentive to get petroleum companies to drill for oil and natural gas and keep energy production inside the United States.

Since then, a number of other royalty relief measures have been passed, such as the one included in the most recent energy bill, signed last summer, which increased the amount of oil that can be drilled without paying royalties.

Royalty relief under the 1995 act could cost taxpayers up to $80 billion over the next twenty-five years, depending upon the outcome of an industry lawsuit, according to a recent draft report by the Government Accountability Office. This includes a mistake by the government when drawing up some of the royalty agreements, which could cost $10 billion.


This is why they want to drill more on public coastal east and west and Alaskan wild life refuge. We pay at the pumps and pay again by getting ripped off. Very insightful Sunday. Excuse me while I complain to my congressmen and senators.