In light of President Obama’s speech on energy in Maryland today, Independent Petroleum Association of America (IPAA) Vice President of Federal Resources & Political Affairs Dan Naatz sent a letter to U.S. Department of Interior (DOI) Secretary Ken Salazar in which he raised serious concerns about the administration’s recent comments and proposed policies regarding oil and natural gas production on federal lands:
“Earlier this week, you were quoted at the White House as saying, ‘the fact of the matter is we are producing more from public lands both oil and gas both onshore as well as offshore than any time in recent memory.’ We are confused by these statements because the most recent data we have seen from DOI indicates that both oil and natural gas production on federal lands declined over the last year.
“We are also troubled by the Obama Administration’s efforts to place additional inspection fees, raise fees on Applications for Permits to Drill (APD) and increase the royalty rate on oil and natural gas produced on federal lands by 50 percent. Although the President talks about increasing American energy production, the cumulative impact of these fee and royalty increases are bound to have the opposite impact.
“We can only assume these massive fee and royalty increases are designed to fundamentally alter the ability of America’s oil and natural gas producers to operate on federal lands.
“America’s oil and natural gas producers are proud to provide our nation with the resources to fuel our economy and economic prosperity. Despite the continued threats of additional tax burdens, fees and royalty rate increases, America’s independent oil and natural gas producers remain committed to delivering the reliable energy the American people demand and deserve.”
To read the full letter, please click here.