Pam Kasey of the State Journal reports that Ohio's Gov. Kasich is proposing an increase in oil and gas severance fees, but at rates lower than West Virginia's :
In the proposal, the state would tax the production of natural gas from shale at 1 percent of market value and natural gas liquids, condensate and oil at 4 percent of value. The tax rate for liquids would be 1.5 percent in the first year to allow producers to recover the cost of establishing new wells.
Low-volume gas wells — those producing less than 10 thousand cubic feet per day, or Mcf, on average — would be taxed at the lesser of 3 cents/Mcf or 1 percent of market value, and small, conventional natural gas producers would see their severance tax eliminated.
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