Watching Government
Royalty rejoinder

Industry won a major victory recently when the US Senate voted to block the US Minerals Management Service's controversial royalty management rule for another year (OGJ, Oct. 4, 1999, p. 40). But it took a public relations whipping in the process.Last week, the American Petroleum Institute and the Independent Petroleum Association of America jumped to the counterattack. API wrote President Bill Clinton, urging him to intervene and order MMS to repropose the rule-and basically start again from scratch. That would effectively delay the issue until the next administration takes the reins.API Pres. Red Cavaney said the oil industry agrees that the old system of valuing federal royalty pro...

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