"I'm sorry I don't buy it. This sounds more like a payback to a monopoly with lobbying power."
Bizarro.
I am a sometimes rancher. I also own a small oil and gas operating company (about 750 employees).
I typically pay or receive a 1/8 royalty to the mineral owner.
Sometimes, I get or give a sweeter deal if the land is marginal or unproven. For example, I have some land in Pecos/Reeves county that has never been that great.
Deep, deep, gas and expensive wells.
Well I gave some leases I would not otherwise have given because I got guarantees that the leasee would go explore for gas and drill certain depths and formations.
Same thing here, except the government is the landowner. The land in question is cruddy land, expensive to develop, build pipelines, etc.
It's really basic economics --- no one would take the usual deal, so the government sweetened the pot.
I can't believe the number of people who fall for the liberal talking points, even here.
"I typically pay or receive a 1/8 royalty to the mineral owner."
So you're saying the gov't shouldn't be "typical"?