Shortchanged

States are being shortchanged hundreds of millions of dollars by low-ball royalties for oil and natural gas development on federal lands, a report released Thursday by a Denver-based nonpartisan think tank says, based on an analysis of five western states, plus North Dakota and Texas.

A judge in Tarrant County, TX, has dismissed four lawsuits against XTO Energy in which plaintiffs alleged that XTO, now a unit of ExxonMobil Corp., shortchanged them in lease payments.

Old battle lines were being redrawn last week over natural gas research, development and demonstration (RD&D) funding. The Independent Petroleum Association of America (IPAA), which represents the nation’s independent gas producers, came out strongly against a proposal by the Gas Technology Institute (GTI) to reinstate interstate pipeline surcharges on transported gas for the purpose of funding RD&D. However, the American Gas Association, which represents gas utilities, told FERC it favors such an approach.

The Independent Petroleum Association of America (IPAA), which represents the nations independent gas producers, came out strongly against a proposal to reinstate interstate pipeline surcharges on transported natural gas for the purpose of funding gas research and development (R&D) by the Gas Technology Institute (GTI). IPAA also said other associations representing major producers and large gas consumers were preparing to file comments with FERC in opposition to GTI’s funding proposal.