Jared Huffman: “This amendment strikes section 122 from the underlying bill. That section would prevent the BLM from meeting its…”

“This amendment strikes section 122 from the underlying bill. That section would prevent the BLM from meeting its statutory obligations under the Mineral Leasing Act to ensure operators ``use all reasonable precautions to prevent waste of oil or gas.'' The BLM would also be prevented, if this underlying provision remains, from modernizing the existing 30-year-old oil and gas production rules to bring them into line with technological advancements in the industry. If that provision stays in the bill, States, tribes, and Federal taxpayers stand to lose royalty revenues when natural gas is wasted, which a 2010 GAO report estimated could amount to as much as $23 million, annually, in royalty revenue. If this provision remains in the bill, BLM will not be able to update the current royalty rate or raise it as conditions may warrant. A recommendation has been made by both the GAO and the inspector general that they do that, that the conditions do indicate that an increase is in order. So it is just good government to take this provision out, to update a 30-year-old set of regulations in order to better reflect the current operating climate and to ensure a fair royalty return. I urge my colleagues to support this amendment. I reserve the balance of my time.”