New Report — A Renter’s Market

A new report by the Center for Western Priorities finds that American taxpayers are not receiving a fair return from the oil and natural gas boom on federal public lands.  “A Renters Market: Outdated Oil and Gas Rental Rates Fail Taxpayers” highlights the Bureau of Land Management’s badly outdated rental system in which oil and gas companies pay only $1.50 per acre annually – less than a cup of coffee – to rent federal public lands for drilling.

CWP finds that updating oil and gas rental rates, something that has not been done since 1987, could generate an additional $56 million annually for taxpayers. Modernizing rental rates – the fee companies pay to hold onto nonproducing leases – would also help to discourage companies from stockpiling unused oil and gas leases, a common practice on Western public lands where there are almost 7,000 approved drilling permits sitting idle.

Click here to download the Renter’s Market report.