Maloney amendment to CLEAR Act to ensure accuracy in oil and gas revenue from Big Oil adopted

Jul 30, 2010
Press Release

WASHINGTON, DC – An amendment sponsored by Rep. Carolyn Maloney (D-NY) to require a study to improve the measurement of oil and natural gas extracted from leased federal and Tribal lands was attached to the Consolidated Land, Energy, and Aquatic Resources (CLEAR) Act, H.R. 3534, comprehensive legislation that will provide greater efficiency and accountability to the management and regulation of energy resources to be considered by the full House today.

“The CLEAR Act, along with my amendment, will provide needed oversight and transparency to the management of the oil and natural gas industry,” said Rep. Maloney. “Right now, the American taxpayer does not accurately know the amount of oil and natural gas extracted on leased federal lands-- so we don’t know how much the oil companies should pay in royalties. With the study required in my amendment, Congress, the Administration, and the American people will better understand the changes that must be made to ensure appropriate compensation for resources obtained from public lands.”


Maloney’s amendment is based on legislation she introduced in March, 2009, H.R. 1462, which is based on technical and scientific testimony given by Jack J. Grynberg before Congress.


“I believe this amendment will help oil and natural gas producing states, and counties within those states, to increase their collection of the severance and ‘ad valorem’ taxes so desperately needed to provide necessary services to all their citizens,” said Mr. Grynberg.


Last week the House Committee on Oversight and Government Reform held a hearing entitled, "Offshore Drilling: Will Interior's Reforms Change Its History of Failed Oversight?"  At that hearing Danielle Brian, Executive Director of the Project on Government Oversight, testified on the need for drilling reform, saying, "Royalty collections are one of the largest sources of revenue for the government after taxes, and MMS has a fiduciary responsibility to taxpayers to ensure their accurate measurement and collection. Representative Maloney’s legislation asking for the National Academy of Engineering to determine the need for improvements (H.R. 1462) would significantly help MMS accomplish this."


On June 25, 2010, Rep. Maloney was one of two Congressional recipients of the Good Government Award from the Project on Government Oversight, an award for outstanding service in the pursuit of holding the government accountable to its citizenry.








As a member of the Oversight and Government Reform Committee, Rep. Maloney has fought to ensure proper oversight of the management of the oil industry and that taxpayers are paid their fair share of royalties.  Her efforts to force Big Oil companies to pay fair market value resulted in the federal government collecting billions more in oil and natural gas revenues.  To better understand what actions the federal government should take to have the most accurate measurement methods in the collection of oil and gas royalties, she introduced H.R. 1462.  She has been a long-time critic of Royalty-in-Kind, a mismanaged program first piloted in 2001 that is eliminated entirely under the CLEAR Act.




Text of Maloney amendment here. (PDF)  Text of original Maloney oil bill, HR 1462, here. (PDF)