Richard Pombo: Working Hard As Ever To Protect Record Oil Company Profits

Pombo Wants Taxpayers To Subsidize Big Oil While Already Paying Big At The Pump.


LA Times: Energy Bill Is a Boon to Oil Companies
Legislation OKd by the House would encourage extraction of oil shale in the Rockies by slashing royalties paid to the federal government. (source)

"Tucked into a massive energy bill that would open the outer continental shelf to oil drilling are provisions that would slash future royalties owed to the federal government by companies prospecting in Rocky Mountain oil shale deposits.

Sponsored by Rep. Richard W. Pombo (R-Tracy) and passed by the House earlier this year, the bill would amend an existing requirement that the federal government receive a "fair return" from oil companies that hold oil shale leases on public lands. Instead, Pombo's bill, modeled after a Canadian law, would reduce royalties from the customary 12.5% of annual revenue to 1%.

Further, the bill could cut the reduced rate by as much as 80% if the price of oil fell. Over many years of oil production, the royalty discounts could amount to tens of billions in lost federal receipts, said James T. Bartis, an analyst at the Rand Corp. who wrote a widely used study of the economic prospects of the developing oil shale industry. The provision would benefit the energy industry, which is a heavy contributor to Pombo's reelection campaign.

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Direct contributions from energy and natural resource companies account for about 10% of donations to Pombo's current reelection campaign...Exxon Mobil and Chevron have contributed $10,000 and $9,000, respectively, to Pombo's campaign." (more-at-source)