Bureau of Land Management Slashes Royalty Rates for Tax Dodger US Realm
HELENA, MT – The Bureau of Land Management has once again provided a bailout to a Big Oil corporation in deep financial trouble. Reporting in the Buffalo Bulletin, based in part on Western Values Project’s research, found that the bureau awarded US Realm Powder River a staggering 96% discount on 23 federal leases in Wyoming despite owing some $4 million in unpaid federal royalties and failing to pay local taxes for the last three years.
“Bailing out oil and gas corporations with massive unpaid tax liabilities is a misuse and abuse of taxpayer dollars, period. The state’s entire congressional delegation agreed that there should have been safeguards in place to prevent this type of abuse, but that is clearly not the case under Sec. Bernhardt’s culture of corruption,” said Western Values Project Director Jayson O’Neill. “Once again, the Trump administration has opted to put polluters over people without a second thought while taxpayers foot the bill.”
According to the reporting, while the Wyoming congressional delegation supported the royalty rate cut and lease suspension program, lawmakers believed that safeguards should have been put in place and that oil corporation that have unpaid liabilities should not have been awarded a bailout.
Senator Barrasso issued a statement that said, “federal funding should not go to any producer delinquent in their taxes.” Most of the same fossil fuel corporations that have been awarded billions in taxpayer-funded bailouts were in dire straits well before the downturn and have billions in outstanding liabilities and debt — including, in this case, delinquent taxes.
US Realm Powder River’s bailout and checkered past includes:
- US Realm Powder River is the sole or majority lessee on 16 BLM leases that were given a reduced royalty rate.
- US Realm holds a 50% or greater share in 21 of its 23 leases that received the maximum royalty reduction for May and June, according to the BLM’s LR2000 database. At the time these reductions were approved, the company owed more than $40,000 in 2019 royalties on the specific leases that received relief, according to a court claim from the U.S. Department of Interior.
- US Realm Powder River, previously known as Moriah Powder River LLC went bankrupt in October 2019. It owed $11.15 million in unpaid taxes to Johnson County, Wyoming.
- US Realm Powder River also dodged millions in taxes owed to Campbell county, Wyoming, despite having $130 million in profits there.
Read Western Values Project’s full research report here.
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