Royalty payments?

[Toucano]

Royalty Payments

I don't hear a lot of discussion regarding BP paying for the oil itself, in addition to the costs of cleanup and the damages to local economies.

Can't they be expected to pay for the oil released under the terms of the lease contracts?

Does anybody know?

[petronius]

1. Royalties are based on the sale price of the oil, so if BP doesn't bring it

to market then there won't be any royalties due...

[napi21]

2. All I know is that shrub & his minions agreed to inkind trades

of oil instead of royalty payments. As I understand that, it means the oil co's would send oil pumped from wells in the US of a specific kind that we don't use & instead of getting royalties we got the kind of oil we use (light sweet crude,I think). I also heard that Obama revoked that order, wiich I assume mens we are now getting royalties.

Sorry I don't have any links to any of that. It's just info I've read & heard over the last few months from different sources.

[amborin]

3. Obama dropped the offshore royalty tax on Big Oil:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=8262151&mesg_id=8262151

.....As recently as August 25, 2009 - when President Obama submitted his Mid-Session Review budget to Congress – he recognized this fleecing of the taxpayer by Big Oil and proposed a “Levy tax on certain offshore oil and gas production” as a back-door way to capture some revenue from these no-royalty leases, raising $6 billion over a decade.........But in Obama’s budget submitted in February, the Administration has now dropped this offshore tax on Big Oil (you can see the itemization of repealed oil & gas tax breaks on page 30 of 88 at the above link, with the new levy tax now gone)......Obama puts a lot at risk with this offshore drilling plan and gets little reward. What a disappointment.

[Scuba]

4. Yes, they're on the hook for that oil. But the royalty payments....

...to the US are only a third of what Norway gets. They must be better negotiators. Or less corrupt.