Two US Senate Democrats Monday introduced bills aimed at cutting some federal support for oil and gas companies.
California Senator Dianne Feinstein introduced the Drilling Royalty Relief Prohibition Act, which would prohibit the Interior Department from waiving royalty payments for oil and gas offshore drilling in waters deeper than 400 meters. The bill would also repeal a provision in the Energy Policy Act of 2005 which made such royalty relief mandatory for such deep-water drilling in the key producing area of the Gulf of Mexico.
"While oil companies continue to collect record profits, the government should not lose out on royalties that could fund clean energy deployment," Feinstein said in a statement.
A second bill, introduced by Florida Senator Bill Nelson, would prevent companies from receiving federal tax breaks for oil spill-related expenses, including clean-up and legal costs.
"Given the record profits of the big oil companies, I don't think they need any more help from taxpayers," Nelson said in statement.
Nelson's Oil Spill Tax Fairness Act would not apply to expenses caused by a natural disaster or an act of war, he said.
