Long-awaited money from a settlement on the Wind River Indian Reservation in Wyoming is finally on its way.
The federal government is paying the tribes $157 million for underpayment of royalties on oil and gas development and improper management of royalties that were paid. Northern Arapaho spokesman Mark Howell says some people don’t have bank accounts and there were concerns they would not be able to cash their checks.
The federal Office of Natural Resources Revenue, or ONRR, has fined a Wyoming oil and gas producer $204,362 for not submitting timely production reports for its federal leases. Matrix Production Company was issued two notices of noncompliance before ONRR levied the penalties. ONRR spokesman, Patrick Etchart, says the production reports are used to keep companies in check.
The federal royalty rate for trona was recently reduced from 6-percent to 4%. Industry has been pushing for royalty reductions for over a decade. But Powder River Basin Resource Council’s Jill Morrison says if anything, the royalty should be increased.
“Our position has always been that minerals are a finite resource. Once they’re removed they’re gone and we have that one chance to tax those minerals and get that fair market value because that’s what’s going to help balance our budget, both at the state and national level,” says Morrison.
The US government isn’t getting the full fair market value from coal lease sales on public lands. That’s according to a report released today by the Department of the Interior’s Office of Inspector General.
The report says recent lease sales potentially undervalued the coal by $62 million. The Bureau of Land Management appraises the leases instead of using the DOI’s Office of Valuation Services like its rules say it should, and the BLM does not take into account increased exports of coal abroad.