US says BP must pay royalties on Macondo

Michael Bromwich: BP must pay royalties on Macondo.

Interior Department

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Noah Brenner

 15 July 2010 17:17 GMT

The lead regulator for US offshore drilling told BP today that it must pay royalties on oil and natural gas it collects from the Macondo well.



BP also would have to pay royalties on oil and gas spilling into the ocean if the government determines the UK supermajor was negligent or broke any rules that caused the blowout and subsequent spill, Michael Bromwich, head of the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEM) said in a letter today, citing provisions of the Federal Oil and Gas Royalty Management Act and BP’s lease.

The US government takes an 18.75% royalty on offshore wells in federal waters.

Interior spokewoman Kendra Barkoff told UpstreamOnline that Macondo partners Anadarko…

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