Feb 28, 2023 Dan Naatz Opening Statement for House Natural Resources Committee Legislative Hearing on the TAP American Energy Act
IPAA thanks Chairman Westerman, Chairman Stauber, and Representative Graves for the thoughtful reforms outlined in the Transparency and Production of American Energy Act of 2023 (TAP Act). Many of the reforms outlined in the TAP Act will help to revitalize oil and natural gas producers operating on federal lands and waters to the benefit of the nation. The “multiple-use mandate” provided in the Federal Lands Policy and Management Act (FLPMA) requires the Bureau of Land Management (BLM) to balance the resources and uses of public lands to the benefit of the American people. While this mandate includes a variety of uses beyond oil and natural gas production, it clearly is not intended to prevent the production of American oil and natural gas. IPAA believes that safe and responsible development of the nation’s natural resources needs to remain an integral part of the equation.
Currently, of the 640 million acres of land that are federally owned in the United States, roughly four percent are leased for oil and natural gas development. Yet, even with this small percentage, oil and natural gas still have an enormous monetary impact for the federal treasury. All federal oil and gas royalty, rental fee, and bonus bid revenue is split roughly half between the U.S. Treasury and the states where development occurs. That revenue helps fund critical investments in communities across the United States and supports jobs, schools, conservation efforts and infrastructure projects. The amount of annual revenue that Federal mineral development provides to the U.S. Treasury is second only to that provided by the Internal Revenue Service. (Bureau of Land Management)
There are several commonsense reforms in the TAP Act that will increase certainty for American producers and will ultimately lead to a more streamlined process for federal oil and natural gas development. While IPAA is supportive of the bill in its entirety, there are a few key provisions that I would like to highlight in my testimony this morning. …