Obama seeks new drilling inspection fees, higher royalty rates

Oil and gas companies would face new fees and higher royalty rates under President Barack Obama’s federal budget proposal. The proposed permit processing charges, annual inspection fees and hiked royalty rates aim to pay for more staff and resources at the Bureau of Ocean Energy Management, Regulation and Enforcement while also boosting “the return to taxpayers from mineral production on federal lands and waters,” according to an administration budget document. “Taxpayers could earn a better return through more rigorous oversight and policy changes, such as charging appropriate fees and reforming how royalties are set,” the budget summary said. Offshore drillers...