Royalties

XTO Penalized for ‘Knowingly’ Underpaying Natural Gas Royalties on U.S. Lands

XTO Penalized for ‘Knowingly’ Underpaying Natural Gas Royalties on U.S. Lands

ExxonMobil’s U.S.-focused subsidiary XTO Energy Inc. has agreed to pay $16 million to resolve allegations that it knowingly underpaid royalties owed on natural gas produced from federal and Native American lands.  The settlement with the U.S. Department of Justice (DOJ) resolves allegations that XTO improperly deducted costs that were “necessary to put the gas in…

November 9, 2023
Higher Oil, Natural Gas Prices Push Alberta Budget into Surplus

Higher Oil, Natural Gas Prices Push Alberta Budget into Surplus

A six-year streak of provincial budget deficits in Alberta ended in 2021 thanks to higher oil and natural gas prices that drove a five-fold increase by government royalties, according to an annual treasury review. In the Alberta provincial treasury annual review for the year ended March 31, 2022, Finance Minister Jason Nixon reported record royalties…

July 1, 2022
British Columbia Revamping Natural Gas, Oil Royalty System

British Columbia Revamping Natural Gas, Oil Royalty System

British Columbia (BC) has unveiled a revamped oil and natural gas production royalty system that would replace a patchwork of complex incentives with a flat 5% rate on all wells until costs are fully paid. The sliding-scale royalties on paid-for wells would range from 5% to 40%. Rates would be driven by prices fetched on…

May 23, 2022
Permian to Bolster New Mexico Budget with 77% Jump in Oil, Natural Gas Revenue Forecast

Permian to Bolster New Mexico Budget with 77% Jump in Oil, Natural Gas Revenue Forecast

Higher-than-expected oil and natural gas production, as well as stronger prices, are giving New Mexico’s coffers a boost, the state’s Legislative Finance Committee (LFC) recently reported. The committee also anticipates Fiscal Year (FY) 2021 oil output of 408 million bbl, or 1.12 million b/d — a 10.8% year/year increase. “Global consumption and demand for oil…

December 17, 2021
Alberta’s Oil Curtailment Policy Expiring This Month

Alberta’s Oil Curtailment Policy Expiring This Month

After reserving power to order oil production cuts without needing to use it for 13 months, the Alberta government plans to let the emergency curtailment policy expire at the end of this month. “The market is now working as it should,” said Alberta Energy Minister Sonya Savage.  “Oil production has reached pre-pandemic levels but is…

December 15, 2021
BC Seeking to Modernize Natural Gas, Oil Royalty System with Assessment Review

BC Seeking to Modernize Natural Gas, Oil Royalty System with Assessment Review

With fossil fuel prices rising and liquefied natural gas (LNG) export facilities under construction to propel industry growth, British Columbia (BC) has launched an overhaul of its notoriously complicated natural gas and oil royalties. “The BC royalty system for natural gas and oil is broken,” according to a government-commissioned preliminary report. The assessment was done…

October 14, 2021
Interior Punts Trump-Era Reforms to Oil, Natural Gas Royalty, Migratory Bird Rules

Interior Punts Trump-Era Reforms to Oil, Natural Gas Royalty, Migratory Bird Rules

In the continued back-and-forth machinations to scuttle Trump-era rules, the Interior Department is axing regulations put in place last year, including rules that eliminated millions in revenue from fossil fuel extraction. In early January, the Trump administration finalized a makeover of Obama-era royalties reforms known as the 2020 Valuation Reform and Civil Penalty Rule. The…

September 30, 2021
Chesapeake Gains Approval for $6.3M Royalties Settlement with Pennsylvania Landowners

Chesapeake Gains Approval for $6.3M Royalties Settlement with Pennsylvania Landowners

After more than seven years, a federal court has given final approval to two class action settlements that would require Chesapeake Energy Corp. to pay Pennsylvania landowners more than $9 million for improperly calculating oil and gas royalties.  The U.S. District Court for the Southern District of Texas certified two settlement classes this week. The…

August 25, 2021
Pennsylvania Case Against Natural Gas Royalty Deductions Derailed by Court Ruling

Pennsylvania Case Against Natural Gas Royalty Deductions Derailed by Court Ruling

The Pennsylvania Supreme Court has ruled that the attorney general (AG) can’t use the state’s Unfair Trade Practices and Consumer Protection Law against natural gas producers in a setback to the AG’s case alleging landowners were underpaid royalties. The state’s high court reversed a lower court’s decision and ruled 6-1 that the law shields only…

March 31, 2021
Permian-Fueled Revenue Lifts Texas Oil, Natural Gas Royalties Near $14B

Permian-Fueled Revenue Lifts Texas Oil, Natural Gas Royalties Near $14B

Lifted by revenue pulled from the Permian Basin in West Texas, the state’s oil and natural gas industry paid $13.9 billion in taxes and royalties in fiscal 2020, or around $38 million/day,  according to a top industry group. Data compiled by the Texas Oil & Gas Association (TXOGA) indicated state energy industry taxes and royalties…

January 14, 2021
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