Congressman Jim Davis Calls on Chevron to Renegotiate Oil Leases for Taxpayers’ Sake

 

WASHINGTON, DC – Yesterday, Congressman Jim Davis joined 25 of his House colleagues in calling on Chevron’s Chairman and CEO, Dave O’Reilly, to ensure that his company treats the American taxpayers fairly.  In the attached letter to O’Reilly, the lawmakers asked the company to renegotiate oil leases that could cost taxpayers as much as $1.5 billion.

 

Earlier this month, Chevron and its partners announced the discovery of a vast oil field deep in the Gulf of Mexico – a discovery that will add handsomely to the companies’ already inflated annual profits.  In the late 1990’s, Chevron negotiated with the U.S. Department of Interior for the rights to drill in this region, known as the Jack oil field.  Part of the agreement allowed Chevron to avoid paying taxes on their activities in the leases, but language was omitted from the agreement to end this “royalty relief” when the price of oil spiked.

 

“At a time when oil prices, and oil industry profits, are through the roof, Chevron stands to rake in an estimated $1.5 billion at the American taxpayers’ expense,” said Congressman Jim Davis.  “Chevron has the opportunity to do the right thing; to think of its customers, the American people, and renegotiate its contract with the federal government.  As those of us in Congress work to address the nation’s energy crisis, I hope Chevron will be part of the solution.”