HELPING OIL COMPANIES OVER TAXPAYERS? CHANGES TO FEDERAL OIL VALUATION RULE DISAPPOINT REP. MALONEY

May 5, 2004
Press Release

WASHINGTON, DC - Today, a change in the government’s rule for collecting royalties from oil companies producing oil on federal lands was finalized by the Department of the Interior’s Mineral Management Service (MMS). Rep. Carolyn Maloney (NY-14), who has urged MMS to be cautious with taxpayer money since the rule change was first discussed last year, today reacted with disappointment:

“Today, the Minerals Management Service finalized an oil valuation rule that will lose money for American taxpayers. By increasing the number of deductions, this rule fails to provide for the fair return on federal resources that MMS contends it will. Instead, the oil companies' profits will increase while the federal government, states, and tribes will see the royalties owed to them decrease. I do not believe that Bush Administration provided Congress with sufficient evidence to justify this rule change, and I’m very disappointed that it has decided to devalue the resources obtained on lands owned by the American people.”

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