How to Establish Oil Shale Regulations With Lower Royalty Rates

Lower royalty rates for oil shale can promote energy development.

Oil shale royalty rates are established by the United States Department of the Interior Bureau of Land Management (BLM). A royalty rate is the percentage of profits a business must pay for using public resources. Energy businesses favor lower royalty rates because oil shale extraction is costly and therefore a lower royalty rate promotes the oil shale industry. To establish a royalty rate, interested parties must go through the federal rule making process. This will involve lobbying, writing briefs, and possibly commenting in a federal public forum.

Things You'll Need

• Attorneys
• Stakeholders

Instructions

1. Lobby by speaking to federal officials and legislators to favor your position. While a winning argument in any public debate is prized, nothing beats influence in changing the laws. When speaking with officials, explain the economic benefits to the region and the nation by lowering the royalty rates. Explain to a legislator in the region how the lower rates will translate into more jobs. This economic reality may result in the legislator publicly favoring your position. Also, make your voice heard in the court of public opinion. Publish op/eds in newspapers favoring lower royalty rates.

2. Hold a meeting. After a BLM Advisory Committee considers a new federal regulation, they will publish the new regulation. The BLM may engage in negotiated rule making in which stakeholders will be asked to comment on the proposed regulation. Hold a meeting with stakeholders, attorneys, and advocates to create a plan. The plan should be a detailed agenda that determines who will write briefs to the committee, and who should focus on specific issues.

3. Comment before the committee. While the committee will read briefs and letters, it may also invite you to speak in a public forum. Whether your are writing or speaking, encourage the BLM to establish lower royalty rates. Give reasons for lower royalty rates. Discuss breaking our dependency on foreign oil, and the economic benefits to communities where oil shale production will take place. Address environmental concerns. Explain that high royalty rates deter development and punish innovation.

4. Wait for the decision of the committee. Hopefully your influence and arguments will convince the committee to establish lower royalty rates.

Tips & Warnings

• Identify as many prominent stakeholders as possible.

• Develop strong arguments that address environmental concerns.

References

• Center of the American West: What Every Westerner Should Know About Oil Shale
• U.S. Department of the Interior: Collaborative Action Toolkit