While the campaign to export liquefied natural gas gains momentum, one organization says the federal government charges too little for minerals extracted from federal lands.
Industry officials countered that it’s already difficult enough to drill on federal land and increasing the royalty rate would add an unnecessary obstacle.
Elected officials in the West are pushing for the export of liquefied natural gas as a way to support a natural gas industry hungry for new markets.
U.S. Sen. Mark Udall, D-Colo., and U.S. Rep. Cory Gardner, R-Colo., both scrambled last week to introduce legislation aimed at approving exports of liquefied natural gas.
The royalty rate for drilling and mining on federal lands is 12.5 percent, a level the Denver-based Western Values Project said is too low. The project released a report on Monday calling for an increase in the royalty rate.