Oil Royalties Talks Under Way [View All]

[jpak]

http://www.lasvegassun.com/sunbin/stories/bw-exec/2006/sep/21/092102488.html

WASHINGTON (AP) - The Interior Department won't try to recover $1.3 billion in royalties lost because of faulty drilling leases and instead is focusing its talks with oil companies on getting money from future production.

Acting Assistant Secretary Johnnie Burton said Thursday "it would be very hard to recoup" any of that revenue lost from oil already pumped under terms of the 1998-99 leases.

Because of a government mistake, the eight- to 10-year leases did not require royalty payments if the price of oil topped $36 a barrel. Oil prices have been well above that in recent years, reaching $76 a barrel at one point.

Burton told reporters that one-third of the 59 companies that have an interest in the leases have indicated they would like to settle the matter.

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