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WASHINGTON, DC 20510

March 30, 2020

The Honorable David Bernhardt

Secretary
Department of the Interior
1 849 St., NW

Washington, DC. 20240
Dear Secretary Bernhardt,

Thank you for your leadership during this difficult time. As we consider efforts to maintain the
drivers of our economy, we ask for your support in providing relief, within your existing authority,
to essential industries impacted by the pandemic. America?s energy producers face
unprecedented challenges, putting hundreds of thousands of jobs, reliable and affordable energy
sources, and our national energy security at risk.

Congress is considering a wide array of efforts to ensure our economy continues to function amidst
this crisis through industry-appropriate financial resources and regulatory pathways. We hope the
Department of the Interior will strongly consider similar efforts to ensure industries operating
within the federal estate have the resources and certainty needed to withstand this pandemic. With
this in mind, we encourage you to reduce, delay, or suspend the federal royalty payments for oil,
gas, and coal to the US. Treasury. We also ask that you consider lease term extensions and
suspension of production requirements, where appropriate, to help preserve existing energy leases
throughout this tumultuous time. To the extent possible, we ask that you preserve the state?s share
of revenues collected.

As Secretary, you have several authorities that allow you to reduce or suspend royalty payments.1
While economic conditions will improve over time, providing this necessary relief now will ensure
America continues production, essential industry jobs are preserved, and taxpayers receive a fair
return from federal lands in the future.

These essential industries are seeking to continue production rather than a bailout and should be
given due consideration as such. There is no playbook for the situation we ?nd ourselves in and
we must utilize every existing authority to enable them to come out the other side of this hardship
intact.

 

1 Sections ofthe Mineral Leasing Act (30 U.S.C. 209), the Outer Continental Shelf Lands Act (43 U.S.C. 1337), and the Naval
Petroleum Reserves Production Act of 1976 (42 U.S.C. 6506a) grant the Secretary the authority to waive. suspend, or reduce
royalties from mineral production from the federal mineral estate.

Given these considerations, we urge you to provide necessary relief in the form of a suspension or
reduction in federal royalties paid to the .8. Treasury, particularly for small and midsize
producers. Without these measures, it is likely that many companies will cease production, which
could cost thousands of jobs and threaten American energy security. These measures of relief will
allow a stronger domestic energy industry to emerge and will help maintain America?s role as a

global energy leader.

Sincerely,

J1. 18211?1assoM.DW
. . Senator

Michael B. Enzi
US. Senator

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