Environmental Tax question

Four years ago when we were just getting into all this, we sign a lease with HG for a 120 acre piece in Wetzel. Unfortunately, we allowed for deductions. They drilled and got a producing well, however in the first two years, they took out no deductions with the exception of the Severance Tax. Then they sold our lease to AEP and they immediately started taking around 13% of our royalties for deductions. One of the deductions was for an Environmental Tax which I don't recall seeing mentioned on this site. Anyone know anything about this. As to deductions for taxes, I know a lot of people complain about the deductions, but if it is something that I will eventually have to be responsible for and pay, I would just as soon they did it and save me the trouble.

Views: 228

▶ Reply to This

Replies to This Discussion

Permalink Reply by Philip Thackray on June 3, 2015 at 4:02am

Jim,

What happens if AEP collects your taxes and doesn't send them off to the respective governments (go bankrupt or simple malfeasance).  I think you are still responsible for paying the tax.

Phil

Permalink Reply by Jim White on June 3, 2015 at 8:26am

Collecting money from a third party for Federal taxes and then sending it on pizza is a federal crime. I would bet it is a state crime as well. I don't think they could bankrupt against those collected taxes either. I'm willing to bet that Aubrey would not be that stupid. Now, if it was Joe's Pizza and Fracking Company, I might be a little concerned...

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service