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Oxy Says $2M Gas Royalty Payment Order Must Be Undone
Law360 (July 22, 2021, 9:01 PM EDT) Occidental Petroleum Corp. on Wednesday urged the Tenth Circuit to wipe out an order that it pay $2 million in federal gas royalties for leases in northeastern New Mexico, saying a lower court rubber-stamped the government s erroneous conclusion that the company needed to pay up.
In rejecting Occidental unit Oxy USA Inc. s bid to dodge the payments ordered by the Office of Natural Resource Revenue, a New Mexico federal judge in December said the agency had appropriately relied on the terms of Oxy s gas lease to come up with the figure, instead of relying on outdated regulations from the 1980s..
Inside the Dirty, Dangerous World of Carbon Flooding 17/04/2021
An active oil pumpjack east of Andrews, Texas, November 2009. Photo: Zorin09/Wikimedia Commons, CC BY 3.0
Around the world, scientists and advocates call for keeping carbon in the ground as a means of staving off climate change. But in the Southwestern United States – mainly in Colorado and New Mexico – a mainstay of obtaining more oil is facilitated by doing the exact opposite: drilling pure reserves of carbon dioxide out of the ground.
After it’s extracted from these natural-source underground fields, the gas then gets piped to the Permian Basin, the nation’s top-producing oil fields of West Texas and southeastern New Mexico. There, oil companies use the CO2 to flood their wells, forcing the last dregs of crude to the surface in a process also known as enhanced oil recovery, or EOR.
Around the world, scientists and advocates call for keeping carbon in the ground as a means of staving off climate change. But in the Southwestern United States mainly in Colorado and New Mexico a mainstay of obtaining more oil is facilitated by doing the exact opposite: drilling pure reserves of carbon dioxide out of the ground.
After it’s extracted from these natural-source underground fields, the gas then gets piped to the Permian Basin, the nation’s top-producing oil fields of West Texas and southeastern New Mexico. There, oil companies use the CO
2 to flood their wells, forcing the last dregs of crude to the surface in a process also known as enhanced oil recovery, or EOR.