REUTERS.
Sergio Cabral,Governor of the State of Rio de Janero, and a close ally of President Luiz Inacio Lula da Silva, told a S.Paulo newspaper it would be "unjust" to reduce the amount of oil royalties and taxes paid to producing states. One of the proposals would place control of oil royalties in the hands of the federal government.
The new rules will be released on Aug. 31.
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