The House voted 252-165 on Thursday to add a royalty relief provision to the 2007 Interior appropriations bill.

The provision encourages energy companies to renegotiate their leases in the Gulf of Mexico. It prohibits the Interior Department from entering into new leases with companies that refuse to renegotiate.

Supporters said the measure will save the federal government billions in oil and gas royalties. Since 1998, some energy companies have been allowed to pay fewer royalties even though the price of gas has skyrocketed.

Separately, tribal and state governments say lax Interior Department oversight of drilling leases is costing them millions in royalties. A group of tribes and states are considering lawsuits.

The Interior bill is H.R.5386.

Get the Story:
Vote in House Seeks to Erase Oil Windfall (The New York Times 5/19)
pwnyt

Draft Report:
Briefing on Oil and Gas Royalties (March 27, 2006)

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