William R. Richardson: “let me just say that this is a good bipartisan bill, and there are five fundamental reasons why this is a good bill.…”

“let me just say that this is a good bipartisan bill, and there are five fundamental reasons why this is a good bill. First, it clarifies a collection time frame by establishing a 7-year statute of limitations allowing for certain extensions by the Secretary. Second, it levels the playing field, provides for interest at equivalent IRS rates to be paid on royalty overpayments and continues interest payments on underpayments. Third, it empowers the States. This gives the States a more rightful role in the delegation of royalty functions that choose to perform the duties. It gives the States, many oil and gas States, many in the West, more involvement in collection, and that is critically important. It scores positive. What we have is CBO estimating $36 million to the Federal Government and an additional $9 million to the States over 6 years. Last, the administration supports the bill. And because of the changes coming from the Senate, I am informed that the ranking member of our committee, the distinguished Member from California, George Miller, is in support of the bill. What we have is a piece of legislation that will allow individual States to take over the responsibility of collecting royalty payments for oil, gas and coal leases on Federal lands. Needless to say, in my State of New Mexico this is critically important.”