|Statement on Trump Administration’s Plans to Repeal of Oil, Natural Gas and Coal Valuation Rule|
|FOR IMMEDIATE RELEASE: March 24, 2017 |
CONTACT: Parish Braden or Molly Block (202) 226-9019
|Washington, D.C. – Today, the Department of the Interior announced plans to repeal the Office of Natural Resources Revenue’s (ONRR) “Consolidated Federal Oil & Gas and Federal & Indian Coal Valuation Rule.” |
“The Trump administration should be commended for beginning the process of reversing the impossible regulatory requirements imposed on energy development by this rule. Endless layers of regulation don’t yield greater returns for taxpayers, they paralyze economic activity. In this case, the rule hit marginal producers – the small businesses that support local economies – the hardest,” Chairman Rob Bishop (R-UT) said.
“The ONRR’s mineral valuation rule added more red-tape, complexity and confusion to an already overly-complicated mineral valuation process, creating a disincentive for responsible development of our natural resources on federal land and ultimately hurting hardworking Americans and their families the most. I am glad to see that Secretary Zinke joins us in recognizing the harmful impact this rule would have on energy producers and consumers alike and has started the process for withdrawing the regulation through the rulemaking process,” Rep. Scott Tipton (R-CO) stated.
“Let’s be clear—the ONRR mineral valuation rule was nothing but a shadow tax on American energy. In my home state of Louisiana, it meant reduced state revenue sharing dollars, hindering our ability to make major investments to restore our coast and protect Louisiana families and businesses from devastating storms. I applaud Secretary Zinke’s action to begin withdrawing this damaging rule, and look forward to working with the Department of Interior to promote safe and responsible energy production throughout the U.S.,” Rep. Steve Scalise (R-LA) said.
ONRR finalized the regulation on valuating royalties from oil, natural gas and coal produced on federal and tribal lands on June 30, 2016.
Reps. Tipton and Scalise introduced a H.J. Res. 71, a resolution of disapproval under the Congressional Review Act, that would rescind the onerous rulemaking and prohibit substantially similar rules from being considered.