Let’s agree that wasteful free subsidies for oil and gas companies is not good for this country or this earth. Why do these profitable corporations pay nothing for over $380 million in royalties on the gas they have extracted over the past eight years on federal land?
The gas and oil industry has avoided paying royalties on gas they use as fuel for their drilling rigs is decades old. Since 1946 our Congress has permanently exempted any natural gas used for fuel on well sites from royalty payments. How does it make sense that royalty-free fuel for oil and gas companies.
Now the Bureau of Land Management (BLM), in the Department of Interior, is considering changing these outdated free drilling rules on federal lands.
From an environmental perspective, the largest component of the lost gas is methane, which leaks from drilling rigs, storage tanks, pipelines and outdated equipment. Such lost methane is a dangerous greenhouse gas. Pollution controls to capture this leaking gases is not being used.
The bottom line is Americans are giving oil and gas companies royalty-free fuel and little incentives for drilling companies to lessen their toxic methane releases. Is there anything missing with this picture?