• @paultimate14
    link
    205 months ago

    This example is for a 640 acre property leased at $12,160, which the oil company claims was an artificially inflated price because a conservation group was bidding.

    That seems like a ludicrously small dollar figure. My guess that that the state is leasing the land cheaply, then making up for that with severance taxes on the extracted fossil fuels and minerals. Conservation groups would not generate those severance taxes.

    • Buelldozer
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      fedilink
      65 months ago

      My guess that that the state is leasing the land cheaply, then making up for that with severance taxes on the extracted fossil fuels and minerals.

      That’s exactly how it works and it’s why the State of Wyoming cannot afford to let leases go to organizations that won’t use them.