Republicans Seek Huge Welfare Handouts to Wealthy Rent-Seekers

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Millions for Special Interests in Senate Interior Bill Several senators are planning to serve up a smorgasbord of giveaways to the oil, mining, timber and coal industries.

For example, Sen. Kay Bailey Hutchison (R-TX) and Sen. Pete Domenici (R-NM) have attached a rider to the spending bill for the Interior Department and other related agencies that would allow oil companies to continue to underpay royalties to the federal government when those companies drill oil on public lands.

The Department of the Interior (DOI) estimates that major oil companies currently are underpaying oil royalties when drilling on public lands by about $66 million annually, for a total of $856 million since 1991. The Hutchison-Domenici rider prevents the DOI from collecting royalty payments from delinquent oil companies until June 2001.

Most of the oil royalties go back to the federal treasury. However, a portion of the royalties goes to Native American Tribes and to certain states for public education.

Both proponents of this legislation have received substantial campaign donations from the oil and gas industries. Sen. Hutchison accepted more money in campaign contributions, $1.2 million, from the oil and gas companies than any other industry during the past five years, according to federal records.

Likewise, federal records on Sen. Domenici's campaign reveal that oil and gas industries were one of his top contributors with $186,000. Congress shouldn't cater to special interests at the expense of taxpayers. It is fiscally irresponsible for lawmakers to waste money on provisions for its industry friends, while our country is floundering in $5.6 trillion dollars of debt.

Other Wasteful Legislation in the Interior Bill

Timber Sales Management: The U.S. Forest Service lost $2 billion from 1992-1997 through its Timber Sales Management Program, according to the U.S. General Accounting Office. Yet, the Senate has added $48 million to the Administration's request for the program. Timber companies, not taxpayers, should pay the full cost of preparing and administering timber sales.

Mining Rider: Senator Larry Craig (R-ID) has attached a rider to the Interior Bill that would cost taxpayers millions by allowing mining companies to patent an unlimited amount of public land for $2.50-5.00 an acre to dump their waste which could cost taxpayers millions in cleanup costs. The Craig rider would amend the Mining Law of 1872, which has allowed the industry to extract more than $240 billion of publicly owned minerals without paying a penny in royalties to taxpayers. The law has also left a $32-$72 billion cleanup bill for abandoned mines.

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For more information contact Keith Ashdown at 202-546-8500 ext.110 or keith@taxpayer.net   TCS is at www.taxpayer.net

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