X hits on this document

99 views

0 shares

0 downloads

0 comments

36 / 47

Economic Analysis

lected for marginal production were about $1.25 billion during 2006. Furthermore, the production loss from marginal oil and gas well abandonments in 2006 would represent a $33.8 million loss in severance taxes assuming average marginal produc- tion rates.

Ad valorem taxes are property taxes assessed by local government entities, and a marginal well may be subject to multiple overlapping taxing entities. As noted in prior reports, a survey of ad valorem

taxation approaches in oil and gas producing states shows the tax assessment process differs widely among the states and sometimes also within a state, with corresponding varying tax rates. While we are not aware of any published data that allows a reasonable estimate for marginal well ad valorem tax expense, our experience suggests that the ad valorem tax expense is probably a value of similar magnitude to the severance taxes.

Note: Many states have different or multiple production level cut-offs in determining stripper status.

  • e rates shown here assume the lowest tax applicable to a stripper well producing at the lowest

production level cut-off. Source: www.spee.org.

2006 Production from Marginal Wells (Mcf)

Annual Total Marginal Gas Production Tax Revenue

2006 Lost Production (Mcf)

Annual Lost Marginal Gas Production Tax Revenue

Annual Total Marginal Production Tax Revenue

Annual Lost Marginal Production Tax Revenue

30,156,913 0 43,494 18,700,000 4,505,285 94,485,949 0 184,000 1,460,491 178,670,000 91,500,000 52,154,475 20,878 80,800,000 9,486,746 28,935,586 823,851 0 0 101,488,431 10,170,315 691,183 71,382,588 176,878,538 0 156,705,000 399,891 1,792,984 320,508,067 15,962,409 2,404,616 158,446,233 99,649,661 1,708,407,584

$14,706,765 $0 $8,166 $149,600 $2,788 $737,850 $0 $0 $116,533 $1,041,646 $24,667,252 $678,008 $9,511 $22,504,509 $4,160,385 $0 $535,702 $0 $0 $50,304,813 $0 $53,359 $1,784,565 $80,383,670 $0 $0 $123,516 $449,917 $160,024,732 $200,204 $0 $60,506,142 $36,283,036 $459,432,669

402,878 0 0 85,466 596,990 1,122,138 0 17,031 48,785 3,053,417 413,057 1,259,010 0 375,931 7,738 790,244 0 0 0 1,633,331 23,969 31,417 782,368 4,579,164 0 157,492 0 78,217 13,076,416 412,387 612,941 939,650 1,623,709 32,123,747

$196,474 $0 $0 $684 $369 $8,763 $0 $0 $3,893 $17,801 $111,355 $16,367 $0 $87,254 $3,393 $0 $0 $0 $0 $809,594 $0 $2,425 $19,559 $2,080,575 $0 $0 $0 $19,627 $6,485,269 $5,172 $0 $358,826 $591,202 $10,818,602

$18,181,111 $0 $65,010 $7,712,608 $2,323,841 $1,293,671 $0 $0 $1,147,200 $1,789,312 $29,382,889 $27,681,189 $9,511 $31,109,404 $7,388,489 $0 $11,140,962 $2,737,265 $0 $113,172,176 $0 $6,600,473 $2,265,079 $266,974,128 $0 $0 $256,647 $672,077 $604,149,711 $417,228 $227 $63,567,566 $54,109,055 $1,254,146,830

$386,357 $0 $0 $119,801 $159,768 $23,173 $0 $0 $33,710 $32,713 $211,327 $728,521 $0 $315,915 $60,728 $0 $431,831 $27,612 $0 $1,829,158 $0 $303,494 $23,032 $5,043,227 $0 $0 $0 $33,072 $22,749,633 $8,874 $530 $382,196 $864,370 $33,769,042

State

Environmental, Gas

etc.)

$/Mcf

North Dakota

8.13 4.16 6.01 6.36 6.53 6.51 8.13 7.98 7.98 5.70 5.99 7.64 6.51 4.64 7.23 0.00 5.75 3.76 6.01 6.05 6.81 7.36 7.64 6.31 3.72 7.64 6.52 8.36 6.61 6.27 0.00 7.64 6.01

Ohio

Oklahoma

$0.0001

Oregon

Pennsylvania

South Dakota

Tennessee

Texas

$0.0033

Utah

0.20%

Virginia

West Virginia

Wyoming

0.06%

TOTAL

2006 Average

Other Taxes (Conservation

,

Alabama Alaska Arizona Arkansas California Colorado Florida Illinois Indiana Kansas Kentucky Louisiana Maryland Michigan Mississippi Missouri Montana Nebraska Nevada New Mexic

New York

o

$0.00008 $0.005 $0.0062 0.12% $0.0058 1% $0.005 0.30% 1%

31

Document info
Document views99
Page views99
Page last viewedFri Oct 28 18:20:37 UTC 2016
Pages47
Paragraphs4695
Words12318

Comments