[MeanWestTexan]

The government (that's you) owns the oil in the ground on federal land, and, like any mineral owners, gets its cut --- called the royalty.

I own mineral rights, I get my 1/8 from the operator who leases from me.

I operate oil and gas wells, I pay my 1/8 to the mineral owner from whom I lease.

Here, the government cut its royalty to encourage domestic exploration --- and to get some money, when it was previously getting none.

It's not that hard.

[woofer]

Here, the government cut its royalty to encourage domestic exploration --- and to get some money, when it was previously getting none.

It's not that hard.

Klintoon's responsible for the royalty abeyance. The Bush Admin is smart enough to know that some fields are thin margin prospects. And with the product reaching the consumer stream now, the Government will reap the excise taxes and make a bundle.

[Smartaleck]

Made sense at 50 a barrel, does it at 70?

Regardles, when oil companies are reporting record profits the timing of such and issue couldn't have been worse.