Texas O&G Welfare = reduced tax rate @ ave 1.44% on (high-cost) Natural Gas wells over last 18 yrs

This chart from the Texas Comptroller’s Office shows the past 18 year period tax rate for High Cost Natural Gas Wells that enjoy reduced tax rates from our normal 7.5% tax rate on natural gas per our Tax Code

From 1991-2001 there was a 100% tax exemption for these High Cost Natural Gas Wells.

At least the bleeding stops with this reduced tax rate (and resumes to the 7.5% rate) after ten years or when the tax incentive is half of the cost of the well which ever comes first.

The TexasTribune reported that in 2015, 850 oil wells were reclassified from oil wells (taxed at 4.6%) to high-cost natural gas wells (taxed at reduced rate that averaged 1.44%), whereas in 2013 there were only 145 reclassifications to NG.

Also in our tax code in Sec. 201.059. there is relief in CREDITS FOR QUALIFYING LOW-PRODUCING WELLS. …gee the welfare never ends for them!

Per this fabioandmerrill article that I boldfaced for emphasis the “white oil” (SCAM?) cases of Hufo Oils v. Railroad Commission had an interesting feature on     SP AC I N G      R E Q U I R E M E N T S   for oil vs gas wells, “….Hufo was principally concerned with whether “white oil” should be treated the same as “oil” under the statutory definitions. “White oil” was defined in Hufo as “casinghead gas reduced to a liquid state (natural gasoline) by a LTX unit (low temperature extraction unit) located at the well site.” …The classification of a well as an oil well or a gas well has profound economic consequences for several reasons: 1) Spacing requirements are different for oil wells and gas wells. In the Panhandle, the spacing rule for gas wells is one well for each 640 acres, whereas oil wells may be spaced as close as one well for each ten acres. Accordingly, up to sixty-four oil wells may be drilled on the acreage required for one gas well…”

Too bad they didn’t have those spacing requirements in the Barnett Shale Hell of Urban Drilling Gas Wells.

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About Kim Triolo Feil

Since TX Statute 253.005 forbids drilling in heavily settled municipalities, I unsuccessfully ran for City Council Seat to try to enforce this. Since Urban Drilling, our drinking water has almost tripled for TTHM's. Before moving to Arlington in 1990, I lived in Norco’s “cancer alley”, a refinery town. It was only after Urban Drilling in Arlington did I start having health effects. After our drill site was established closest to my home, the chronic nosebleeds started. I know there are more canaries here in Arlington having reactions to our industrialized airshed (we have 55-60 padsites of gas wells). Come forward and report to me those having health issues especially if you live to the north/northwest of a drill site so I can map your health effects on this blog. My youtube account is KimFeilGood. FAIR USE NOTICE: THIS SITE MAY CONTAIN COPYRIGHTED MATERIAL THE USE OF WHICH HAS NOT ALWAYS BEEN SPECIFICALLY AUTHORIZED BY THE COPYRIGHT OWNER. MATERIAL FROM DIVERSE AND SOMETIMES TEMPORARY SOURCES IS BEING MADE AVAILABLE IN A PERMANENT UNIFIED MANNER, AS PART OF AN EFFORT TO ADVANCE UNDERSTANDING OF THE SOCIAL JUSTICE ISSUES ASSOCIATED WITH EMINENT DOMAIN AND THE PRIVATIZATION OF PUBLIC INFRASTRUCTURE (AMONG OTHER THINGS). IT IS BELIEVED THAT THIS IS A 'FAIR USE' OF THE INFORMATION AS ALLOWED UNDER SECTION 107 OF THE US COPYRIGHT LAW. IN ACCORDANCE WITH TITLE 17 USC SECTION 107, THE SITE IS MAINTAINED WITHOUT PROFIT FOR THOSE WHO ACCESS IT FOR RESEARCH AND EDUCATIONAL PURPOSES. FOR MORE INFORMATION, SEE: HTTP://WWW.LAW.CORNELL.EDU/ TO USE MATERIAL REPRODUCED ON THIS SITE FOR PURPOSES THAT GO BEYOND 'FAIR USE', PERMISSION IS REQUIRED FROM THE COPYRIGHT OWNER INDICATED WITH A NAME AND INTERNET LINK AT THE END OF EACH ITEM. (NOTE: THE TEXT OF THIS NOTICE WAS ALSO LIFTED FROM CORRIDORNEWS.BLOGSPOT.COM)
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