Dear Resources Committee Member,  Taxpayers for Common Sense Action, a national non-partisan budget watchdog, is concerned with several provisions of the House Resources Committee proposed budget reconciliation bill. We are strongly opposed to Subtitle B, the mining subtitle which would sell America’s public lands assets at pennies on the dollar while blocking the federal government from earning much needed royalty revenues. Further, we oppose provisions to limit oil shale royalty revenues on federal lands, and we oppose the diversion of Outer Continental Shelf royalties away from the federal treasury and into local coffers.

Support Udall Amendment

Subtitle B requires the U.S. to sell public lands at the unreasonably low price of $1,000 per acre. The subtitle also bars the government from seeking mining royalties on land made available by the legislation. This denies taxpayers the opportunity to receive a fair market value for these public lands and resources.

The legislation fails to ensure that land made available under Subtitle B must be used for mining purposes. Instead, it allows companies to purchase land for “sustainable economic development,” a vague term that could include the construction of residential or commercial properties. In addition, the subtitle does not prevent public lands purchasers from reselling their lands immediately at market value. This allows companies to reap a windfall profit from public lands, all at the taxpayer’s expense.

We support the amendment by Rep. Tom Udall (D-NM) to strike Subtitle B from the bill. At a time of massive budget deficits, we cannot afford to sell off our public assets for a fraction of their worth. Subtitle B of this legislation would result in a fire sale of public lands that would hang taxpayers out to dry.

Oppose Oil Shale Provisions

We also oppose section 6401, the oil shale and tar sands amendments. This section fixes oil shale production royalties at between 1-3%, thereby repealing a provision in the two-month-old Energy Policy Act that “ensure[s] a fair return to the United States.” This provision denies taxpayers royalty revenues we need to pay down the debt.

Oppose OCS Revenue Diversions

Finally, we strongly oppose the Outer Continental Shelf (OCS) oil and gas royalty revenue diversions in Subtitle E. The Outer Continental Shelf is a federal resource, and at a time of out-of-control deficits, this resource should not be diverted to the states. This subtitle diverts up to 40% of OCS revenues to state and local governments, and it creates a set of new funds to siphon OCS dollars for specific purposes. We strongly believe that all OCS royalty revenues and bonus bids should go to the general Treasury so that they may pay down our debt and relieve the budgetary burden on future generations.

We Need Cuts, Not Giveaways

The budget reconciliation process provides an opportunity to cut the fat out of the federal budget and put our spending priorities back on track. But with the OCS revenue diversions, oil shale royalty rollbacks and the fire sale of public land, this legislation hijacks the reconciliation process to push through huge corporate giveaways that will only dig this country deeper into debt.

Again, we urge you to support the Udall amendment to the House Resources Committee’s budget reconciliation proposal. If you have any questions, please contact Evan Berger at (202) 546-8500 x111, or email

Sincerely,

Jill Lancelot

President / Co-Founder