House Votes to Recoup Lease Royalties - AP

[Eugene]

Source: Associated Press

House Votes to Recoup Lease Royalties

By H. JOSEF HEBERT
The Associated Press
Friday, July 27, 2007; 4:20 PM

WASHINGTON -- The House voted Friday for a measure
aimed at recouping billions of dollars in oil and gas
royalties that were lost because of faulty federal leases.

A provision added to the farm bill, which in turn was
approved by the House, would impose a "conservation of
resources" fee on oil and gas taken from deep waters of
the Gulf of Mexico under the questionable leases.

The fee would be imposed by the Interior Department on
energy companies that refuse to revise the lease
agreements issued in 1998 and 1999. Many of the leases
will be good for years to come.

While a few companies have agreed to change the lease
provisions, most have not, contending they are valid
contracts and the government shouldn't renege on them.

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Read more: http://www.washingtonpost.com/wp-dyn/content/article/2007/07/27/AR2007072701659.html