BLM PLANS TO CUT ROYALTY RATES FOR ONSHORE STRIPPER OIL WELLS

The U.S. Bureau of Land Management will cut royalty rates for 15,000 stripper oil wells on federal land effective Jan. 1. The 12.5% royalty for wells producing less than 15 b/d will be reduced on a sliding scale (see table). The reduction is to be applied by lease, based on production for the previous year. Injection wells are to be counted in determining average production/well/lease. Even if operators increase production on the lease, royalties will remain at the new reduced rate for 5

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