Energy & Environmental Law Blog : Energy & Environmental Lawyer & Attorney : Vorys, Sater, Seymour and Pease Law Firm : Oil, Gas & Green Technology

The Hill is reporting on a study done by a Louisiana State University economist finding that the Administration's proposed tax increases on the oil and gas industry would cost more than 150,000 American jobs.  "'Though politicians think they are selectively targeting 'Big Oil' with these energy tax proposals, they would actually devastate thousands of small American businesses nationwide as well as the workers who depend on them,' Mason said in prepared remarks."  (Fails to mention that he's a Senior Fellow at the Wharton School ...)

For more on Dr. Mason, see here.

[Immediate update:  On a related note, the Houston Chronicle is reporting on the failure of a proposal by Senate Democrats to eliminate the Section 199 deduction for producers.  Tied it to Obamacare of all things!]

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On Wednesday, the Pennsylvania Budget and Policy Center issued a report entitled Responsible Growth:  Protecting the Public Interest with a Natural Gas Severance Tax, asserting that a well-structured severance tax will protect Pennsylvania taxpayers from the public costs associated with increased drilling in the state.  More generally, it looks at the potential costs of natural gas drilling on taxpayers and the environment, how other states structure severance taxes, and the lessons that can be learned from those structures.  A copy can be found here.

Pennsylvania producers - through their trade associations, primarily - have opposed new severance taxes on the industry, pointing out their adverse impacts on prices and development.

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This is interesting - There are some NY legislators opposed to a new 5% production tax proposed by Governor Paterson, according to this report from the Long Island Exchange.

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Some Democrats in Congress have warned the Obama Administration that newly proposed fees and taxes on the oil and gas industry could lead to a decrease in domestic production and higher consumer prices, according to this article in the Houston Chronicle.

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API officials are meeting with the new Interior Secretary, Ken Salazar, this week to discuss the Administration's proposals to impose new fees and eliminate tax incentives for American energy producers, according to this report from the Houston Chronicle.  Among other things, at issue are plans to repeal deductions for intangible drilling costs, prevent oil and natural gas companies from claiming domestic manufacturing deductions and a repeal the percentage depletion for wells.

[Update:  The Fort Worth Business Press is reporting that the Natural Gas Council has sent a letter to Congress pointing out the effect of the new Administration's tax proposals on the production industry and, ultimately, prices to the consumer.  A similar letter from IPAA can be found here. (Moved up)]

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Environmental groups are urging Pennsylvania to adopt a state severance tax, according to this report from the Pittsburgh Post-Gazette.  This would be in addition to other fees imposed on producers in the state.

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Natural gas retail suppliers and one customer sued Ohio's Tax Commissioner alleging that Ohio's tax scheme is discriminatory because local distribution companies benefit from certain tax exemptions and exclusions that the suppliers do not.  The U.S. Court of Appeals for the Sixth Circuit recently held that general principles of comity and federalism did not bar the suit, reversing an earlier lower court decision dismissing the suit for lack of subject matter jurisdiction.

A copy of the decision can be found here.

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With an eye toward the Marcellus Shale, PA county commissioners are looking once again to assess oil and natural gas inventories for property tax purposes, according to this article in the Susquehanna Independent Weekender.

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