As Colorado balances its fiscal priorities for 2024, it’s important that taxpayers continue to get their fair share of revenue from oil and gas production on our public lands.
Antiquated federal policies have enabled oil and gas companies to profit, while Colorado taxpayers alone lost an estimated $38.5 million in potential revenue from oil and gas leasing.
Currently, outdated bonding rates leave taxpayers to cover the cost of cleaning up abandoned oil and gas wells, instead of the companies that made the mess in the first place. Oil and gas companies should pay for cleanup costs on public lands, instead of leaving taxpayers to shoulder a significant financial liability.
That’s why I am grateful that the Department of Interior proposed common-sense reforms to the federal oil and gas program that will secure a fair return for taxpayers and ensure that companies will pay to clean up their messes.
These important reforms take action to raise federal bonding, rental and royalty rates to better reflect the current economy. These needed reforms will not raise gas prices or energy costs for consumers. Instead, they could bring in billions in additional revenue for Colorado’s taxpayers.
Finalizing these updates to the federal oil and gas leasing system is a crucial step to reduce the burden taxpayers have shouldered for too long. It’s time all Coloradans benefit from the oil and gas industry’s drilling and leasing of our state’s public resources, not just oil executives.
Cody Perry
Dolores
