Reid Porter | 202.682.8114 | porterr@api.org
WASHINGTON, May 24, 2011 – API Policy Advisor Allison Nyholm today issued the following statement regarding the United States Department of the Interior’s announcement for an advanced notice of proposed rulemaking on the simplification of royalties, which are one of the government’s largest sources of non-tax revenue:
"Today’s announcement is welcome news for a struggling economy. The multi-billion dollar royalty management program effectively ensures that Americans receive fair compensation for development of federal resources. The industry has been looking forward to an opportunity for open dialogue with the agency on this issue for many months so that uncertainties in the process can be effectively addressed.
"An open, deliberative process involving all stakeholders is the most effective means for developing sound, cost-effective regulations. Uncertainties about royalty obligations still account for a disproportionate number of disputes with huge revenue implications. It would benefit the government, the industry, and the public to instill greater certainty, transparency and predictability in the process.
"Royalty revenues are one of the many benefits of accessing America’s oil and natural gas resources, to the tune of billions of dollars to the government every year. Access to our domestic resources helps to meet increasing energy demands, creates millions of jobs, generates tax dollars for federal, state and local governments, and increases America’s energy security."
API represents more than 470 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America’s energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers $86 million a day in revenue to our government, and, since 2000, has invested more than $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.