Lawmakers block proposal to increase royalty rates

[TexasTowelie]

SANTA FE — State lawmakers on Friday rejected a proposal to allow an increase in the royalty rates levied on oil and gas production on some of New Mexico’s state trust lands.

The bill, backed by newly elected State Land Commissioner Stephanie Garcia Richard, would have raised the cap on royalty rates from 20 percent to 25 percent for the most productive leases — a move supporters said would simply put New Mexico on par with what Texas charges.

But opponents said the proposal risked damaging an industry that already plays a critical role in the state economy and infuses billions of dollars into the state budget.

They also said the royalty rates are just one piece of the financial picture for oil and gas companies and that a recent tax study showed New Mexico already captures a higher share of the revenue than Texas.

Read more: https://www.abqjournal.com/1281405/lawmakers-block-proposal-to-increase-royalty-rates.html

[PoindexterOglethorpe]

1. Despite your screen name, do you live in New Mexico?

You do a quite thorough job of reporting stuff relevant to this state.

As for a more relevant comment from me, I'm not sure what I think about this, since I'm simply not very knowledgeable about this topic.

[TexasTowelie]

2. No, I'm not a resident.

I did make a trip to Carlsbad when I was in my college band though.

It's usually not too difficult to keep up with policy issues within the government and I'm also curious on a variety of topics so when something catches my interest I'll post a thread. It's always hit-and-miss as to whether anyone else will share those interests.

[PoindexterOglethorpe]

3. I have noticed that you post a lot of things pertinent to New Mexico.

Thank you for doing that.