Rep. Maloney delivered the following statement on the Floor:

Thank you Mr. Chairman, I appreciate your willingness to work with me on this issue. I offer this amendment in an attempt to stop giving corporate welfare to America's oil companies.

For too long, major oil companies were paying fees to the federal government based on prices that were far lower than the market value. Basically the oil companies kept two sets of books, one for what they paid each other for oil-at market value and one for what they paid the federal government which was far lower. Now it is one thing for oil to be slick, it is quite another for oil companies to be slick at the expense of American people. Apparently integrity is not something that comes gushing out of their wells.

In a bipartisan way, I held two hearings to investigate money that major oil companies owed the Federal government. Our hearings showed that many of these companies were underpaying fees, costing the American taxpayer nearly $100 million a year. Many companies were sued by the Federal government for deliberate underpayment of fees. Most have elected to settle and, to date, over $425 million has been collected. Combined with states and private lawsuits, the oil industry has reluctantly paid close to $5 billion to settle these underpayment claims.

The Interior Department's new oil valuation rule - which was announced last year - will save taxpayers at least $67 million each year by ensuring that oil companies pay the fair market price for the oil they take from Federal lands.

Now that we have finally put a stop to the industry's secret scheme and are collecting the fair amount of fees for the American taxpayer, we are being asked to examine an entirely new system of fee collection.

Now the oil industry is telling us that they do not want to pay in money, but in OIL! Last I heard, money was still the currency of the US, and the taxpayers should demand no less. The oil companies call it a new way to pay, I call it a new way to stiff America's taxpayers.

Today I offer an amendment to guarantee that industry fees, collected through the so-called "Royalty in Kind" program, earn at least fair market value or more. Why the need for my amendment?

Independent analyses show that in almost all cases, the government under the oil industry plan would have lost revenue compared to actual market prices. In fact, the government LOST almost $3 million when you compare what was received via RIK with what would have been gained for the government if royalties had been paid based on market prices. Ladies and gentleman, RIK puts the Federal government in the oil business. Not because it will save taxpayers money-it will actually cost them more. Not because it is more efficient- that hasn't been shown. No, we are asking the Federal government to enter into the oil business because big oil can no longer get away with cheating taxpayers out of their fair share of royalties received in value.

What's the best reason for this program? Apparently because it will save big oil money. That is the only reason I have seen to support expansion of this program. Today all we are asking is that if we are going to move ahead with this program, we should make sure that it isn't costing taxpayers money.

I thank the Chairman and Ranking member for supporting and accepting this amendment.

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