Cutting royalties cheats U.S.

Re “Energy Bill Is a Boon to Oil Companies,” Oct. 15

It’s bad enough that Rep. Richard Pombo (R-Tracy) already has the most extreme anti-environment record in Congress. Now this pal for any industry that will donate to his reelection wants to reward his paymasters in Big Oil by allowing them to cheat the federal government out of royalties on oil resources on land owned by the public. His bill to slash the royalties paid by oil companies from 12.5% of annual revenue to a paltry 1% is tantamount to robbery. The industry always complains that new technologies are expensive; it’s the first line of defense when it’s faced with a threat to its bottom line. But it is also the cost of doing business.

For Pombo to base his plan on Canadian legislation -- which a Canadian oil representative admits provides a loophole for companies to stay in a perpetual state of expansion so as not to trigger a higher rate -- proves that it unfairly lets oil producers hoard money that should go to the federal government. None of this seems to bother Pombo.

His allegiance always has been to his corporate donors over his constituents. And now it trumps his country as well.

MIKE LASKAVY

Oak Park, Calif.

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The energy bill sponsored by Pombo will greatly increase the profits of ExxonMobil and Chevron (which contributed generously to his reelection) by allowing them to reclaim oil shale on government land by almost eliminating the royalties paid to the government. This is lunacy.

The amount of oil estimated to be recovered is 800 million barrels, which at U.S. Department of Energy estimates will provide only 40 days of oil at our current demand. This is not worth 40 days of fossil fuel pollution and increased global warming.

Now is the time to prepare our country and planet with a clean, sustainable future for our children and their children. As long as large energy corporations receive governmental incentives in exchange for donations to politicians, this will not happen.

DANIEL DIAMOND

Santa Barbara