Today, the Department of the Interior took one big step towards a change in royalty fees paid by companies who want to explore the abundant energy resources located on federal land. The Bureau of Land Management (BLM) issued a notice seeking public comment on the need for new regulations and whether the government should be allowed to raise these fees.
Currently, fees assessed by the Department of the Interior are 12.5% of the gross value of production minus allowable deductions. For some leases, this can be tens of thousands to hundreds of thousands of dollars in fees. (continue reading…)