Members urge Interior to adopt proposal to decrease soda ash royalty rate

U.S. Reps. Kevin McCarthy (R-CA) and Paul Cook (R-CA) along with U.S. Sens. Cory Gardner (R-CO), Pat Roberts (R-KS), and Jerry Moran (R-KS) joined a bipartisan, bicameral contingent in seeking a lower royalty rate for soda ash, a U.S. industry facing stiff global competition.

“A lower federal royalty rate on soda ash will level the playing field in domestic and global markets, and will allow this vital U.S. industry to expand and add jobs throughout the supply chain,” the lawmakers wrote in a Dec. 17 letter sent to David Bernhardt, U.S. Secretary of the Department of the Interior (DOI).

The members voiced support for the proposed Non-Energy Solid Leasable Mineral Royalty Rate Reduction regulation by the DOI’s Bureau of Land Management (BLM) to revise and streamline the process for reductions of rental fees, royalty rates and/or minimum production requirements associated with non-energy solid leasable minerals, according to the proposed Oct. 18 rule in the Federal Register.

“We believe the U.S. Department of the Interior… should have the authority to determine a lower royalty rate for non-energy solid leasable minerals. This mineral group includes soda ash, a primary raw material in the manufacturing of glass, detergents, and other household products,” wrote the group of 30 lawmakers, who also included U.S. Reps. Bill Johnson (R-OH) and U.S. Sen. Debbie Stabenow (D-MI).

The members said that adding Section 3513.17 to the regulations, as proposed, would allow the BLM to make its own determination of need for an industry-wide royalty rate reduction for soda ash and other non-energy leasable solid minerals.

“Currently, the domestic soda ash industry faces severe and unprecedented global competition from synthetic soda ash manufactured in China,” according to their letter. “Final approval of this rule will strengthen U.S. production and export of natural soda ash, and will ensure that our domestic soda ash industry remains competitive and robust.”