It’s the inconsistency of the Fed in it’s leasing and exploration policies that is the real problem. An exhorbitant down payment may be necessary before exploration can begin. And, a short window may be granted win for production to begin. But, of course, OGA’s and environmental suits often get involved and make hitting those windows impossible.

Then, if things are renegotiated, the terms become much less favorable for the company that actually found the oil.

That’s really how it works – even if that’s not on Wikipedia.

Matt

http://www.sourcewatch.org/index.php?title=U.S._federal_oil_and_gas_royalties

I don’t think this is extremely burdensome. of course no one like to pay taxes even oil companies. Whereas in many countries there is a chance that the government may seize your assets .