WASHINGTON, D.C. — Today, Taxpayers for Common Sense (TCS) released a groundbreaking report, “Giving it Away II: How Utah Continues to Lose from Oil and Gas Development on Federal Lands”. The report shines a light on outdated and below-market federal onshore leasing terms that have cost taxpayers $742 million in lost revenue over the last decade in Utah alone. 

Autumn Hanna, vice president of Taxpayers for Common Sense, stated, “Our report brings to the forefront a pressing issue that’s been overlooked for far too long. The outdated federal onshore leasing system has not only robbed taxpayers of nearly three-quarters of a billion dollars in Utah, but it’s also placed an undue burden on them with potential reclamation costs from orphaned wells.” 

The report further underscores that Utah, with the 4th highest acreage of leased land in the U.S., should have generated significant revenues for both federal and state taxpayers. However, the outdated leasing terms have limited these revenues and allowed oil and gas operators to shirk their responsibilities. 

Hanna added, “The fact that we have allowed a system so outdated that it literally dates back over a century to dictate the terms of our precious resources is not just shocking, but fiscally negligent. We, as a nation, owe it to our taxpayers to ensure they are receiving fair compensation.” 

Despite recent reforms aiming to bring the onshore leasing system up to modern standards, the report highlights that these changes, though steps in the right direction, still fall short in ensuring taxpayers receive a fair return on their resources. 

“Change is long overdue. The recent reforms are a positive step, but as our report details, more needs to be done. We need permanent reforms that protect taxpayers,” Hanna emphasized. 

The report emphasizes the need for updated royalty and rental rates, the elimination of noncompetitive leasing, and supports reforms made by Congress last summer. It also addresses the glaring issue of outdated bonding policies, which have not been updated by Congress or the Administration since the 1960s.  

Autumn Hanna concluded, “This isn’t just about dollars and cents. It’s about holding ourselves accountable to future generations. We must manage and protect our shared resources responsibly and ensure we get every penny’s worth.” 

For the full report and additional details, visit the Taxpayers for Common Sense website at  https://www.taxpayer.net/energy-natural-resources/giving-it-away-ii/. 

About Taxpayers for Common Sense:   

Taxpayers for Common Sense is a non-partisan budget watchdog serving as an independent voice for American taxpayers. The organization’s mission is to ensure that the federal government spends taxpayer dollars responsibly and operates within its means. 

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Read the report here.