WASHINGTON—Sen. Mike Enzi, R-Wyo., is pushing to reverse a new law that would decrease the Wyoming’s share of oil and gas royalties.
Enzi and Sen. Ken Salazar, D-Colo., are offering an amendment this week to the Senate budget resolution that would pave the way for states and the federal government to evenly split those royalties. Though the annual budget resolution is nonbinding, meaning it won’t become law, Enzi said that by voting on the issue the Senate can “put its foot down, draw the line in the sand.”
The change first became law as part of a catchall spending bill signed by President Bush in December. Proposed by the administration in last year’s budget and written into the bill by Congress, the provision gives the federal government a greater share of royalties from the extraction of minerals such as oil and gas on federal lands.
While the states and the federal government used to split those royalties 50-50, the split is now 52-48 with the federal government getting the larger share. Wyoming could lose an estimated $20 million due to the change.
The federal government stands to gain close to $40 million, according to 2007 estimates, as part of the $3.1 trillion budget. Officials for the Minerals Management Service have said the money will go for administrative costs.
Enzi called that a “feeble excuse.”
“Wyoming will not be bullied by an Administration that needs more bureaucracy,” he said.
Several other Western states also stand to lose. New Mexico could lose more than $11 million, according to the 2007 estimates. California, Colorado and Utah could lose millions of dollars and Montana could lose hundreds of thousands.
The amendment could be voted on this week.
