John B. Breaux: “The question is, How do we value oil? The law says the companies owe the Federal Government, taxpayers, one-sixth to…”

“The question is, How do we value oil? The law says the companies owe the Federal Government, taxpayers, one-sixth to one-eighth of the value of the oil. The problem is, how do you determine the value? It is a very complicated rulemaking procedure that is ongoing to try to determine what are the legitimate deductions and transportation costs, in particular, determining what the fair market value of oil is. We can rush this thing through. It will result in years of litigation. Or we can pause for a few moments, which is what we are asking to be done, to try to negotiate out something to which both sides can agree. I think it makes more sense to pause for a few moments, get the groups together and work it out, rather than run the risk of years and years of litigation. We know what is going to happen then. Nobody is going to win. The American public is not going to win. I urge we support the Hutchison amendment and get it done in a more realistic and fair fashion.”