Oil producers express ‘lack of satisfaction’ with federal royalty relief efforts


The Washington Post reports that offshore oil producers in Louisiana and other states—and their allies in Congress—are asking the Trump administration to ease up on payments to the government amid the coronavirus pandemic.

The White House declined last month to offer blanket royalty relief to all offshore oil producers. Instead, the Trump administration said it would consider granting relief on a case-by-case basis and encouraged companies for apply for a break through existing royalty relief programs.

Tyler Gray, president and general counsel of the Louisiana Mid-Continent Oil and Gas Association, tells The Washington Post he does think “there is a lack of satisfaction” with relief efforts.

The newspaper reports only four offshore producers have begun the process of applying for royalty relief, according to the Interior Department, which manages both on- and offshore oil and gas leasing. None have yet received it.

House Minority Whip Steve Scalise (R-La.) is among 60 members of Congress urging the Trump administration to change its formula for counting a well’s expenses.

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