Taxpayer Relief from Big Oil Act

Key Points

• The bill repeals the law that let oil companies get reduced royalty payments for deepwater drilling in the Gulf of Mexico.
• It also removes special royalty relief rules that applied to offshore planning areas near Alaska and to the Naval Petroleum Reserve in Alaska.
• Companies would no longer be able to deduct more than 30 percent of their oil and gas value for transportation costs when calculating royalties owed to the government.
• Federal agencies must report to Congress every year on how many companies applied for royalty relief, how many were approved, and how much money the government gained or lost as a result.