Govt Says BP Must Pay Royalties On Captured Oil

[Lone_Star_Dem]

Source: The Post Chronicle

WASHINGTON July 15 (Reuters) - The U.S. Interior Department on Thursday said BP must pay royalties on all oil and natural gas captured from its ruptured well in the Gulf of Mexico.

The company will also have to pay royalties on lost or wasted oil and gas from the well, if it is determined that negligence or regulatory violations contributed to the Deepwater Horizon explosion and spill.

Read more: http://www.postchronicle.com/news/breakingnews/article_212312545.shtml?rssfeed

---

I believe the royalties are 18.75%. Does anyone know for sure?

[Earth_First]

1. I'm waiting for the headline: "Government says BP must pay royally'" n/t

[BrklynLiberal]

2. Should there ever have been any question of this????????

[Lone_Star_Dem]

3. No, not in regards to the captured oil

However, the spilled oil was in debate. BP is not going to like having to pay royalties on top of clean up fees/fines for oil they didn't get to sell for a profit. This is going to add another dimension to the hearings on who was responsible.

[MadMaddie]

4. Darn straight they should pay.

Remember BP was trying to figure out a way to make a profit off of the oil anyway. They just got the short end of the stick with an administration that's not going to give them a pass.

[dipsydoodle]

5. If royalties are 18,5%

then how come Iraq only gets about $3 a barrel from oil companies ?

[Statistical]

7. Got a cite to that?

Generally speaking though the 18.5% isn't a universal standard.

Nigeria for example receives 80%. Many middle eastern nations collect 50% to 70%.

18.5% is for the US and is low compared to global average (just the way Exxon likes it - more for them, less for taxpayers).

[Kringle]

8. Umm, its the other way around .nt

[dipsydoodle]

9. Yes - I had it back to front

Example here : The Shell-Petronas consortium will receive 1.39 US dollars a barrel produced from the field. The companies said they would raise production from the current 45,900 barrels per day to 1.8 million barrels per day over a 10-year period. http://www.independent.co.uk/news/business/news/shell-wins-historic-iraq-oil-contract-1838472.html

I'd thought form memory that the low $ figure swas the royalty percentage.......doh

Apologies to both you and statistical above.

[Curmudgeoness]

6. "Lost or wasted oil and gas"---is that what they call all the pollution

in the gulf? I certainly hope that it is determined that there was "negligence or regulatory violations" and they will have to pay royalties on the "waste". Can't imagine that this is not already determined. But who knows.