House Dem Calls for BP to Pay Royalties for Leaked Oil

By Annie Lowrey
Friday, June 04, 2010 at 5:27 pm

Politico’s Jake Sherman reports that Rep. Nick Rahall (D-W.Va.), the head of the House Natural Resources Committee, has asked the Justice Department to consider forcing BP — responsible for the Deepwater Horizon disaster leaking thousands of barrels of crude oil into the Gulf of Mexico daily — to repay the federal government for the spilled petroleum.

Rahall wrote a letter to Attorney General Eric Holder asking for the government to take “legal action to recover damages owed to the United States for lost royalties.”

The issue of royalties has largely been left aside in the flurry of congressional action since the spill. When a company drills in U.S. waters, it signs a lease with the government and pays royalties for the oil it draws from the ground. Rahall says that the government’s lease with BP stipulates an 18.75 percent royalty.

The challenge will be to figure out precisely how much oil has spilled, and thereby how much money the government lost as a result of the spill.

“Although there is no precise figure for the amount of oil and gas flowing from the well, recent government estimates indicate that at least 500,000 barrels of oil and hundreds of millions of cubic feet of natural gas have been lost, which are currently wreaking havoc on the ocean and coastal environment in the Gulf of Mexico,” Rahall wrote to Holder.

The 18.75 percent royalty would work out to somewhere between $10 and $40 million for oil spilled thus far, depending on the spill estimate used.

Follow Annie Lowrey on Twitter

Comments

11 Comments

North Capitol Street » Blog Archive » House Dem Calls for BP to Pay Royalties for Leaked Oil
Pingback posted June 4, 2010 @ 6:36 pm

[...] full post on The Washington Independent Don't miss a single post! Subscribe to my RSS [...]

AtlanticCapers
Comment posted June 4, 2010 @ 10:38 pm

I LOVE this idea.

Imagine having the General Accounting Office involved in determining how much oil has flowed into the Gulf.

A capitalist solution to a capitalist problem.

I can't wait to hear the counterpoints.

monkey99
Comment posted June 5, 2010 @ 6:28 am

I doubt there will be one. Even Gov. Jindal is changing his stance on this. He WANTS President Obama there-BP does what it's supposed to when he's there, then goes back to “business as usual” when Obama's gone.

If BP can pay for “positive” advertising, while denying those they hurt by this disaster, then I say penalties can't be high enough for BP.

Noontime News Roundup – June 5, 2010 | BPI Campus
Pingback posted June 5, 2010 @ 12:07 pm

[...] House Dem Calls for BP to Pay Royalties for Leaked Oil “Politico’s Jake Sherman reports that Rep. Nick Rahall (D-W.Va.), the head of the House Natural Resources Committee, has asked the Justice Department to consider forcing BP — responsible for the Deepwater Horizon disaster leaking thousands of barrels of crude oil into the Gulf of Mexico daily — to repay the federal government for the spilled petroleum.” [...]

chanel
Comment posted June 7, 2010 @ 2:21 am

It looks good,I have learn a recruit!
Recently,I found an excellent online store, the http://www.chaneloutletstores.com are completely various, good quality and cheap price,it’s worth buying!
write's unique point.It is useful and benefit to your daily life.You can go those chanel chanel outlet chanel store cheap chanel discount chanel chanel on sale chanel for sale chanel leather Chanel bags chanel handbags chanel purses chanel wallets chanel Luggage chanel travel bags chanel shoes chanel boots chanel Accessories chanel belts chanel jewelry chanel scarves Chanel glasses chanel sunglasses chanel clothing chanel dress chanel bikini thefer net Like-Acer tiny let-lands iamateacherithink
sits to know more relate things.They are strongly recommended by friends.Personally
I feel quite well.

p90x workout
Comment posted June 7, 2010 @ 3:32 am

really good, good job,I like ur post!!

gucci outlet
Comment posted June 7, 2010 @ 7:29 am

cheap gucci shoes on sale at http://www.okayoutlet.com

moncler men
Comment posted June 9, 2010 @ 2:44 am

A closely taste of various characteristic snack. Experience the excitement of tasty and spicy, relax and enjoy the fresh of delicious.Here's sites presen various clothing fit for couple dating, friends dinner and banquet.<a href=” http://www.see-for.com“ >see for

Anonymous
Comment posted May 26, 2011 @ 4:15 pm