Markey, Hinchey, Miller Call for End to Big Oil's Free Drilling

Press Release

Even as Republicans propose cutting services to seniors, children and the neediest American families in their new spending bill, they are leaving $53 billion in potential deficit-reducing funds on the table by protecting oil companies from paying their fair share to drill in the Gulf of Mexico. To fix this special interest loophole and recover billions of dollars from oil companies to reduce the deficit, Reps. Edward J. Markey (D-Mass.), Maurice Hinchey (D-N.Y.) and George Miller (D-Calif.) will offer an amendment to the Republican spending bill in the coming hours.

The amendment to the Republicans' yearly spending bill would fix a flaw put in place by a Republican-controlled Congress in 1995 and seek to recover funds from faulty drilling leases in the Gulf of Mexico that allow oil companies to drill without paying any royalties. The Government Accountability Office (GAO) has estimated that taxpayers could lose up to an additional $53 billion over the next 25 years as a result of royalty-free drilling when oil prices are high. The Interior Department also informed Rep. Markey that American taxpayers will lose $1.5 billion just this year from this free drilling.

"Right now, the Republican leadership is looking to cut millions of meals for our nation's senior citizens, while defending these free lunches for BP, Exxon and other multi-billion dollar corporations," said Rep. Markey, the top Democrat on the Natural Resources Committee. "We all know we need to make smart cuts to the deficit, but this is the kind of special interest loophole that should be closed before we open attacks on programs for the poorest Americans. Allowing these companies to drill for free is like giving the New York Yankees Albert Pujols for free -- it's not a good idea."

"These hugely profitable companies are tapping oil and gas reserves that belong to the American People, selling it back to us, and then reaping a massive profit on the backs of middle-class families," said Rep. Hinchey. "But the real kicker is that these oil companies are not paying one red cent to the public for the oil and gas they have extracted from publicly owned resources. They get it for free - and we pick up the $53 billion tab. American taxpayers are getting ripped off. We need this amendment to correct the problem."

"Our amendment puts an end to oil companies' free leases in the Gulf of Mexico, and it would recover up to $53 billion in taxpayer money from oil royalties we should be collecting but do not collect," said Rep. Miller. "Our amendment helps to reduce the deficit and holds giant oil companies accountable for the right to use public resources. The Republican budget fails to hold corporations accountable and therefore they continue to cheat the taxpayer out of billions of dollars. Our amendment puts a stop to it when it comes oil royalties in the Gulf."

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