Energy expert breaks down 'federal leases' on oil wells
ClearView Energy Partners' Kevin Book weighs in on President Biden calling on Congress to force oil companies to pay fees for unused leases on 'Special Report.'
ClearView Energy Partners' Kevin Book joined "Special Report" Thursday to weigh in on President Biden calling on Congress to enforce stricter policies for oil companies with unused leases.
KEVIN BOOK: When you buy a federal lease, you have a 10-year contract with the government. It is an option, not an obligation, to drill a well. You apply for a permit and get a permit, and you drill a well, you're producing. You get to keep the lease. Otherwise, you have to give it back to the federal government, which is to say you lose it within that contract period anyway. In terms of charging a fee after the fact, after the bidder on the lease has already bid and received the lease — those are changing the terms of the deal after the deal. You can do it. Congress can do it if they can pass it. I don't think they can. But if they do, it could discourage investment in the future.
WATCH THE FULL INTERVIEW HERE:
