From Royalty Owners & Producers Educational Coalition

We have put together some points on energy tax policy that have a direct affect on your royalty income. For the past 4 budgets President Obama has requested that Congress repeal oil and gas tax deductions that are only used by independent domestic producers and royalty owners. Including: Percentage Depletion and Intangible Drilling Costs (IDC). President Obama calls these tax deductions government subsidies.

If you make $500/month in royalty income your annual depletion allowance would be $900. Under the Obama administration?s policies you would lose this $900 deduction. If domestic independent producers lose their IDC deduction they estimate drilling 30% fewer wells. That's 30% fewer lease bonus and royalty payments. Repeal of percentage depletion and IDC is a tax increase on domestic production. After implementation of the Windfall Profits Tax in 1980 the Congressional Research Service stated that: "The WPT reduced domestic production between 3 and 6%, and increased oil imports from between 8 and 16% . . . " This made the U.S. more dependent upon imported oil. From the White House web site . . . "President Obama has repeatedly called on Congress to eliminate the wastefultax breaks for oil and gas industry . . ."

Views: 633

Comment

You need to be a member of GoMarcellusShale.com to add comments!

Join GoMarcellusShale.com

Comment by Keith Mauck (Site Publisher) on October 29, 2012 at 9:56am

Local Groups

Latest Activity

Abbey Houghlin posted an event
Thumbnail

JobNewsUSA.com Washington, PA Energy & Transportation Job Fair at DoubleTree by Hilton Hotel Pittsburgh - Meadow Lands

May 2, 2019 from 10am to 2pm
11 hours ago
Inchworm antenna posted photos
11 hours ago
RB replied to RB's discussion 'What's going on with Middlesex Township in Butler County?' in the group Butler County, PA
17 hours ago
Danna Blumenau commented on Tom Knosky's blog post 'No Title'
22 hours ago

Blog Posts

Forgotten Men and Women of Canadian Energy Industry Protest

Posted by Thomas J Shepstone on January 4, 2019 at 10:37am 0 Comments

The forgotten men and women of the Canadian energy industry are mad as hell and not taking it anymore. They’re protesting in their trucks and it’s spreading.

Whenever I go to New York City, which is as seldom as…

Continue

© 2019   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service