June, 21 2022, 11:01am EDT

New Analysis Shows 20 Oil and Gas Companies Have Fleeced Taxpayers By As Much as $5.8 Billion As Biden Administration's First Oil Lease Sales Loom
Twenty major oil and gas companies exploiting public lands have been allowed to fleece U.S. taxpayers by up to $5.8 billion since 2013 due to below-market royalty rates, according to a new analysis from Public Citizen. The analysis, released as the Biden administration prepares to lease more than 140,000 acres of public lands in western states to oil and gas drilling companies, also found that outdated royalty rates allowed 20 fossil fuel companies to skirt up to $1.3 billion in royalty payments just last year.
WASHINGTON
Twenty major oil and gas companies exploiting public lands have been allowed to fleece U.S. taxpayers by up to $5.8 billion since 2013 due to below-market royalty rates, according to a new analysis from Public Citizen. The analysis, released as the Biden administration prepares to lease more than 140,000 acres of public lands in western states to oil and gas drilling companies, also found that outdated royalty rates allowed 20 fossil fuel companies to skirt up to $1.3 billion in royalty payments just last year.
READ THE FULL REPORT HERE: https://www.citizen.org/wp-content/uploads/royalripoff-final.pdf
For decades, when private companies have leased federal lands to drill for oil and gas, the U.S. Department of the Interior has allowed them to pay an extremely low 12.5% rate on the value of oil and gas produced. The federal rate is far lower than the rates of between 16% and 25% that companies pay when drilling on state-owned lands.
The Biden administration has announced it will use an 18.75% rate -- the same rate that oil and gas companies pay for offshore drilling -- in new public lands lease sales scheduled starting June 28. Yet the administration has yet to propose a formal rulemaking to make the higher rate permanent and also ensure that oil and gas companies shoulder the costs of cleaning up old wells.
"While gas prices spike at the pump, these oil and gas drillers are not only squeezing drivers, they are fleecing taxpayers as well," said Alan Zibel, a research director at Public Citizen. "In a year of record oil profits and inflation, the oil and gas industry is taking advantage of unparalleled tax breaks, subsidies, and exemptions. At the very least, these companies should pay a fair price for the resources they extract from public lands and be forced to cover the cost of environmental cleanup without additional costs to taxpayers."
"The Biden administration doesn't need to wait for Congress to act," said Robert Weissman, president of Public Citizen. "The Interior Department must impose rules that end the practice of allowing the fossil fuel industry to pay artificially low royalty rates for the use of public lands. It also must mandate that oil and gas companies clean up their own mess, rather than leaving the problem to taxpayers."
The oil and gas industry and their allies in Congress have been ramping up pressure on the Biden administration to expand oil drilling. Last month , Sen. Joe Manchin (D.WV) criticized the Biden administration for not doing enough to expand drilling -- both onshore and offshore -- but also expressed support for limited royalty rate increases. When fossil fuel companies lease public lands for drilling, they make royalty payments to the federal government based on the sales price of oil or natural gas. For example, if a company sells $1 million of oil in any given month, it would owe the government $125,000 under a 12.5% rate, or $180,750 under an 18.75% rate.
The federal government sends roughly half of these royalties back to oil-producing states. With energy prices soaring, revenue sent back to states has grown significantly over the past 18 months, but is still lower than would be the case if higher royalty rates had been in place over the past decade. Monthly royalty payments to state governments for oil and gas leases grew to more than $300 million in April 2022 from $118 million in January 2020, according to Public Citizen's analysis of Interior Department data. Disbursements to New Mexico grew to $202 million in April 2022 from about $67 million in January 2020. By holding down royalty rates, officials in Washington have missed an opportunity to generate additional revenue for states.
Public Citizen is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power and work to ensure that government works for the people - not for big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.
(202) 588-1000LATEST NEWS
National Team Member Becomes at Least 265th Palestinian Footballer Killed by Israel in Gaza
Muhannad al-Lili's killing by Israeli airstrike came as the world mourned the death of Portugal and Liverpool star Diogo Jota and his brother André Silva in a car crash in Spain.
Jul 04, 2025
Muhannad Fadl al-Lili, captain of the Al-Maghazi Services Club and a member of Palestine's national football team, died Thursday from injuries suffered during an Israeli airstrike on his family home in the central Gaza Strip earlier this week, making him the latest of hundreds of Palestinian athletes killed since the start of Israel's genocidal onslaught.
Al-Maghazi Services Club announced al-Lili's death in a Facebook tribute offering condolences to "his family, relatives, friends, and colleagues" and asking "Allah to shower him with his mercy."
The Palestine Football Association (PFA) said that "on Monday, a drone fired a missile at Muhannad's room on the third floor of his house, which led to severe bleeding in the skull."
"During the war of extermination against our people, Muhannad tried to travel outside Gaza to catch up with his wife, who left the strip for Norway on a work mission before the outbreak of the war," the association added. "But he failed to do so, and was deprived of seeing his eldest son, who was born outside the Gaza Strip."
According to the PFA, al-Lili is at least the 265th Palestinian footballer and 585th athlete to be killed by Israeli forces since they launched their assault and siege on Gaza following the October 7, 2023 Hamas-led attack on Israel. Sports journalist Leyla Hamed says 439 Palestinian footballers have been killed by Israel.
Overall, Israel's war—which is the subject of an International Court of Justice (ICJ) genocide case—has left more than 206,000 Palestinians dead, maimed, or missing, and around 2 million more forcibly displaced, starved, or sickened, according to Gaza officials.
The Palestine Chronicle contrasted the worldwide press coverage of the car crash deaths of Portuguese footballer Diogo Jota and his brother André Silva with the media's relative silence following al-Lili's killing.
"Jota's death was a tragedy that touched millions," the outlet wrote. "Yet the death of Muhannad al-Lili... was met with near-total silence from global sports media."
Last week, a group of legal experts including two United Nations special rapporteurs appealed to the Fédération Internationale de Football Association, the world football governing body, demanding that its Governance Audit and Compliance Committee take action against the Israel Football Association for violating FIFA rules by playing matches on occupied Palestinian territory.
In July 2024, the ICJ found that Israel's then-57-year occupation of Palestine—including Gaza—is an illegal form of apartheid that should be ended as soon as possible.
During their invasion and occupation of Gaza, Israeli forces have also used sporting facilities including Yarmouk Stadium for the detention of Palestinian men, women, and children—many of whom have reported torture and other abuse at the hands of their captors.
Keep ReadingShow Less
'Highly Inspiring' Court Ruling Affirms Nations' Legal Duty to Combat Climate Emergency
"While the United States and some other major polluters have chosen to ignore climate science, the rest of the international community is advancing protections," said one observer.
Jul 04, 2025
In a landmark advisory opinion published Thursday, the Inter-American Court of Human Rights—of which the United States, the world's second-biggest carbon polluter, is not a member—affirmed the right to a stable climate and underscored nations' duty to act to protect it and address the worsening planetary emergency.
"States must refrain from any conduct that reverses, slows down, or truncates the outcome of measures necessary to protect human rights in the face of the impacts of climate change," a summary of the 234-page ruling states. "Any rollback of climate or environmental policies that affect human rights must be exceptional, duly justified based on objective criteria, and comply with standards of necessity and proportionality."
"The court also held that... states must take all necessary measures to reduce the risks arising, on the one hand, from the degradation of the global climate system and, on the other, from exposure and vulnerability to the effects of such degradation," the summary adds.
"States must refrain from any conduct that reverses, slows down, or truncates the outcome of measures necessary to protect human rights in the face of the impacts of climate change."
The case was brought before the Costa-Rica based IACtHR by Chile and Colombia, both of which "face the daily challenge of dealing with the consequences of the climate emergency, including the proliferation of droughts, floods, landslides, and fires, among others."
"These phenomena highlight the need to respond urgently and based on the principles of equity, justice, cooperation, and sustainability, with a human rights-based approach," the court asserted.
IACtHR President Judge Nancy Hernández López said following the ruling that "states must not only refrain from causing significant environmental damage but have the positive obligation to take measures to guarantee the protection, restoration, and regeneration of ecosystems."
"Causing massive and irreversible environmental harm...alters the conditions for a healthy life on Earth to such an extent that it creates consequences of existential proportions," she added. "Therefore, it demands universal and effective legal responses."
The advisory opinion builds on two landmark decisions last year. In April 2024, the European Court of Human Rights ruled that the Swiss government violated senior citizens' human rights by refusing to abide by scientists' warnings to rapidly phase out fossil fuel production.
The following month, the International Tribunal for the Law of the Sea found in an advisory opinion that greenhouse gas emissions are marine pollution under the United Nations Convention on the Law of the Sea and that signatories to the accord "have the specific obligation to adopt laws and regulations to prevent, reduce, and control" them.
The IACtHR advisory opinion is expected to boost climate and human rights lawsuits throughout the Americas, and to impact talks ahead of November's United Nations Climate Change Conference, or COP30, in Belém, Brazil.
Climate defenders around the world hailed Thursday's advisory opinion, with United Nations High Commissioner for Human Rights Volker Türk calling it "a landmark step forward for the region—and beyond."
"As the impact of climate change becomes ever more visible across the world, the court is clear: People have a right to a stable climate and a healthy environment," Türk added. "States have a bedrock obligation under international law not to take steps that cause irreversible climate and environmental damage, and they have a duty to act urgently to take the necessary measures to protect the lives and rights of everyone—both those alive now and the interests of future generations."
Amnesty International head of strategic litigation Mandi Mudarikwa said, "Today, the Inter-American Court affirmed and clarified the obligations of states to respect, ensure, prevent, and cooperate in order to realize human rights in the context of the climate crisis."
"Crucially, the court recognized the autonomous right to a healthy climate for both individuals and communities, linked to the right to a healthy environment," Mudarikwa added. "The court also underscored the obligation of states to protect cross-border climate-displaced persons, including through the issuance of humanitarian visas and protection from deportation."
Delta Merner, lead scientist at the Science Hub for Climate Litigation at the Union of Concerned Scientists, said in a statement that "this opinion sets an important precedent affirming that governments have a legal duty to regulate corporate conduct that drives climate harm."
"Though the United States is not a party to the treaty governing the Inter-American Court of Human Rights, this opinion should be a clarion call for transnational fossil fuel companies that have deceived the public for decades about the risks of their products," Merner added. "The era of accountability is here."
Markus Gehring, a fellow and director of studies in law at Hughes Hall at the University of Cambridge in England, called the advisory opinion "highly inspiring" and "seminal."
Drew Caputo, vice president of litigation for lands, wildlife, and oceans at Earthjustice, said that "the Inter-American Court's ruling makes clear that climate change is an overriding threat to human rights in the world."
"Governments must act to cut carbon emissions drastically," Caputo stressed. "While the United States and some other major polluters have chosen to ignore climate science, the rest of the international community is advancing protections for all from the realities of climate harm."
Climate litigation is increasing globally in the wake of the 2015 Paris climate agreement. In the Americas, Indigenous peoples, children, and green groups are among those who have been seeking climate justice via litigation.
However, in the United States, instead of acknowledging the climate emergency, President Donald Trump has declared an "energy emergency" while pursuing a "drill, baby, drill" policy of fossil fuel extraction and expansion.
Keep ReadingShow Less
Trump Admin Quietly Approves Massive Crude Oil Expansion Project
"This thinly analyzed decision threatens the lifeblood of the American Southwest," said one environmental attorney.
Jul 04, 2025
The Trump administration has quietly fast-tracked a massive oil expansion project that environmentalists and Democratic lawmakers warned could have a destructive impact on local communities and the climate.
As reported recently by the Oil and Gas Journal, the plan "involves expanding the Wildcat Loadout Facility, a key transfer point for moving Uinta basin crude oil to rail lines that transport it to refineries along the Gulf Coast."
The goal of the plan is to transfer an additional 70,000 barrels of oil per day from the Wildcat Loadout Facility, which is located in Utah, down to the Gulf Coast refineries via a route that runs along the Colorado River. Controversially, the Trump administration is also plowing ahead with the project by invoking emergency powers to address energy shortages despite the fact that the United States for the last couple of years has been producing record levels of domestic oil.
Sen. Michael Bennet (D-Colo.) and Rep. Joe Neguse (D-Colo.) issued a joint statement condemning the Trump administration's push to approve the project while rushing through environmental impact reviews.
"The Bureau of Land Management's decision to fast-track the Wildcat Loadout expansion—a project that would transport an additional 70,000 barrels of crude oil on train tracks along the Colorado River—using emergency procedures is profoundly flawed," the Colorado Democrats said. "These procedures give the agency just 14 days to complete an environmental review—with no opportunity for public input or administrative appeal—despite the project's clear risks to Colorado. There is no credible energy emergency to justify bypassing public involvement and environmental safeguards. The United States is currently producing more oil and gas than any country in the world."
On Thursday, the Bureau of Land Management announced the completion of its accelerated environmental review of the project, drawing condemnation from climate advocates.
Wendy Park, a senior attorney at the Center for Biological Diversity, described the administration's rush to approve the project as "pure hubris," especially given its "refusal to hear community concerns about oil spill risks." She added that "this fast-tracked review breezed past vital protections for clean air, public safety and endangered species."
Landon Newell, staff attorney for the Southern Utah Wilderness Alliance, accused the Trump administration of manufacturing an energy emergency to justify plans that could have a dire impact on local habitats.
"This thinly analyzed decision threatens the lifeblood of the American Southwest by authorizing the transport of more than 1 billion gallons annually of additional oil on railcars traveling alongside the Colorado River," he said. "Any derailment and oil spill would have a devastating impact on the Colorado River and the communities and ecosystems that rely upon it."
Keep ReadingShow Less
Most Popular