New Mexico senator co-authors NYT opinion piece on oil, gas industry

Posted: Dec 3, 2020 / 05:27 AM MST / Updated: Dec 3, 2020 / 05:27 AM MST

NEW MEXICO (KRQE) – One of New Mexico’s U.S. senators says the oil and gas industry is taking money out of taxpayers pocket. New Mexico Senator Tom Udall co-authored an opinion piece in Wednesday’s New York Times. Sen. Udall says oil and gas companies pay the government 12.5% of what’s extracted from federal lands.

He argues that the number hasn’t gone up since the 1920s and it’s far below what states charge those companies. For example, Texas charges 25%.

Udall argues the low rates amount to taxpayers subsidizing oil and gas producers. The piece was co-authored by Republican Sen. Charles Grassley of Iowa, who agrees that lease rates on federal lands should be raised.

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