CASPER, Wyo. - The state agency that oversees Wyoming's royalty rate for oil and gas leases on state lands will soon look at raising that rate. Currently, the state receives 16-and-two-thirds percent, and a proposal is on the table to bump that to a maximum rate of 18.75 percent.



Dan Neal, executive director of the Equality State Policy Center, says it's no secret that Laramie County just leased some of its oil and gas assets under a royalty rate of 18.75 percent, and rates in the private market are even higher.



"We don't see any reason why the state shouldn't be getting what private landowners can get. We've heard of private landowners getting more than 20 percent. So, why should we, the people of Wyoming, settle for less?"



On the other side of the debate are assertions that raising the royalty will lead to less production. Neal points out that past reductions in severance taxes didn't lead to increased production, and he says it's clear that production is directly connected to demand, not to royalty or tax adjustments.



Neal says there a lot of pressure from the oil and gas industry not to make changes, but he points out that there is also a responsibility to make adjustments in the best interest of residents.



"What the Office of State Lands and Investments is looking at is changing the terms of the lease to reflect more current times, and really, to assert Wyoming's right to recapture more of the value of the minerals produced."



The Office of State Lands and Investments met recently without examining a rate increase, but it's expected to be debated at the next meeting late this summer, along with a discussion about allowable deductions before charging the royalty.



Laramie County Commission minutes recording the lease decision are at LaramieCounty.com



