Interior Secretary to Review Controversial Leases

The Wall Street Journal reports:

U.S. Interior Secretary Ken Salazar said Friday oil royalty reform would likely be part of a comprehensive energy bill Congress is drafting. Mr. Salazar, speaking to reporters, also said his department was considering how to recoup billions of dollars in revenues the government believes it's owed from oil companies from controversial Gulf of Mexico leases signed in the late 1990s that omitted royalty price thresholds. "We're going to take a look at those 1998-1999 leases... I'm not sure if it's going to be done through legislation or settlement discussions, but it is something we're considering," he said. Mr. Salazar has said one of the royalty reforms he's considering axing is the royalty-in-kind, or RIK, policy and other programs. The RIK allows companies to pay their royalties to the government in oil rather than cash. Another possible target is the deep water royalty relief program. Industry officials say they're concerned, and such reform could prevent new development, particularly in more costly offshore areas...