Federal taxpayers own approximately 700 million acres of land containing oil, gas, and other valuable resources – much of which is concentrated in New Mexico and other western states. The Department of the Interior (DOI) is responsible for leasing federally owned oil and gas for development. Under law, DOI is directed to collect fair market value from the development and sale of these resources. However, the current federal oil and gas leasing system fails to give taxpayers a fair return on these valuable, publicly owned resources. 

Issues within the federal oil and gas leasing system have been well-documented for decades – even by DOI itself. Outdated leasing terms and conditions have cost taxpayers billions of dollars in lost revenue, wasted valuable energy resources, and left taxpayers with additional environmental liabilities. Federal oil and gas development in New Mexico illustrates how outdated leasing policies have cost and will continue to cost taxpayers. 

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