U.S. House Republican Whip Steve Scalise (R-LA) led almost 60 Republican members in urging the U.S. Department of the Interior (DOI) to implement additional reforms that would expedite the royalty relief process for the U.S. energy sector and help protect jobs and businesses.
“We must ensure that when our country emerges from this pandemic, America will continue to be the dominant energy producer in the world,” wrote Rep. Scalise and his colleagues in a May 21 letter sent to DOI Secretary David Bernhardt.
In their letter, the lawmakers acknowledged the department’s work toward encouraging both onshore and offshore energy producers to apply for royalty relief on a lease-by-lease basis.
“However, we encourage you to take additional action to streamline and expedite this process as soon as possible,” they wrote. “We are concerned that the current process is unnecessarily onerous and lacks the clarity needed to provide swift relief.”
Rep. Scalise and his colleagues urged the secretary to consider options like allowing a company to “batch” a series of leases in a single application and setting a timeline by which applications must be acted upon by the agencies, according to their letter.
“Further, it is our understanding that the offshore royalty relief guidance narrows what can be used as an ‘allowable expense’ when determining if a lease is entitled to royalty relief,” they wrote. “We urge you to define such expenses in a manner consistent with Generally Accepted Accounting Principles.”
The congressmen’s efforts are supported by the Louisiana Mid-Continent Oil and Gas Association, the Gulf Economic Survival Team, Port Fourchon, the Gulf Energy Alliance, and the National Ocean Industries Association.
Among the members joining Rep. Scalise in signing the letter were U.S. House Republican Leader Kevin McCarthy (R-CA) and U.S. Reps. Bill Flores (R-TX), Troy Balderson (R-OH), Larry Bucshon (R-IN), French Hill (R-AR), Paul Cook (R-CA), Dan Newhouse (R-WA), Michael McCaul (R-TX), Tom Cole (R-OK), Michael Burgess (R-TX), Guy Reschenthaler (R-PA), Pete Stauber (R-MN), and Ron Estes (R-KS).