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U.S. Department Of Interior Dropping
Discount Rate On Low-producing Oil Wells
July 21, 2005
No author provided at originating website URL.
The Associated Press.
Washington, D.C. - The president of an Oklahoma City-based group of
small oil producers says ending discounts for the producers will mean
lost jobs in rural areas.
Producers whose wells generate fewer than 15 barrels a day currently get a discount on the royalties they're required to pay the government. But the Bureau of Land Management says it's ending the discount in February for the low-producing wells called stripper oil wells Dewey Bartlett, Jr., of the National Stripper Well Association, says the decision shows complete disregard of the economics of the small oil producers. Government officials say ending the discounts would mean an addition $50 million a year that would be divided between the U.S. government and the states.
Source: The Associated Press.
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