Statement issued today by the Ohio Oil ands Gas Association on new Ohio tax reform proposal:
From Thomas E. Stewart, executive vice president of the Ohio Oil and Gas Association:
Today, Rep. Matt Huffman and Speaker William Batchelder introduced a comprehensive oil and gas tax reform package that is rational, substantive and good for Ohio. For these reasons, the state’s oil and gas industry supports it.
The package, which includes a sensible modification of the severance tax based on actual well economics, would enhance the state’s regulatory framework, increase funding for the Ohio Geological Survey and address the lingering environmental issue of plugging idle and orphan wells from historical production.
If passed, the package would also provide much needed clarity for oil and gas producers who have already invested heavily and plan to invest billions more to explore the state’s Utica Shale formation. The ongoing debate about increasing the severance tax has created an air of uncertainty within the industry. Resolving this issue will allow oil and gas development to flourish in eastern Ohio, which will expand economic opportunity and job growth throughout the state.
Additionally, the tax reform package would lower taxes for conventional oil and gas producers and eliminate the threat of higher taxes for the state’s thousands of royalty owners and landowners, which was a major point of contention with the previous tax proposal. The package also earmarks excess revenue for a reduction in the personal income tax for all Ohioans.
This tax reform package is based on sound regulatory, environmental and economic policymaking that will allow all of Ohio to benefit from a robust oil and gas industry.
About the Ohio Oil and Gas Association
The Ohio Oil and Gas Association is a trade association with more than 3,300 members involved in the exploration, production and development of crude oil and natural gas resources within the state of Ohio. For more information, visit www.ooga.org