Replies to This Discussion

Permalink Reply by Bobi Carr ("parker") on May 5, 2009 at 4:26

My favorite comment:

It is bad public policy to pass proposals that have significant adverse effects on domestic oil and natural gas drilling and production.

Be mindful of the law of unintended consequences.

Federal Tax Code is designed to encourage oil and natural gas production in the US and should remain as such.

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Permalink Reply by Bobi Carr ("parker") on May 5, 2009 at 16:25

Alongview,

I've read lots of comments that we need "someone" to get the attention of the legislators to support natural gas. Boone is doing a great job. But it is my opinion that "we" need to be the "someone". Numbers get attention. 349 signatures out of 10,000 members doesn't sound very impressive.

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Permalink Reply by Snake Stewart on May 5, 2009 at 16:53

Same reason people dont get off their haunches and vote on election day. Its much easier to think about doing something then actually doing it. Personal involvement comes at a price most arent willing to pay. They would rather do nothing and complain about the outcome , it would seem.

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Permalink Reply by Bobi Carr ("parker") on May 5, 2009 at 16:42

gingles,

I appreciate your viewpoint, but "profit" is what drives corporations to produce. The tax code encourages or discourages, depending on the basis of the tax.

I don't see a sin in a corporation having cash. If you want them to produce, you have tax incentives.

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Permalink Reply by Bobi Carr ("parker") on May 5, 2009 at 16:45

I liked this comment:

Please do not penalize the best hope we have of survival during these rough economic times. Cleaner, cheaper , abundant, energy is here in the form of N/G and seems to be the most viable next step toward total independance from foreign oil. Make the right move toward a more stable energy policy. Natural Gas is the future. Lets not squander the opportunity that we have.
Thanks

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Permalink Reply by Snake Stewart on May 5, 2009 at 16:50

Big O&G arent really here in a big way. Just big N/G.
But I agree gingles, everyone should pay their share but they arent. If more taxes are applied via rolling back Bush cuts, we will pay even more because they arent going to eat the increase. We will. If the out of country stuff is taxed like in country is as suggested, they will just move assets or change affiliates/names. There isnt another avenue to create wealth and stability right now other than the O&G. But we cant throw everything on their backs. The O&G guys play for keeps. They will survive whether or not we do. We must find a balance in the middle some where. They have been doing this much longer then we have. Best to not push too hard in times of trouble. Kinda like cutting off your nose to spite your face.

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Permalink Reply by The_Baron on May 6, 2009 at 4:08

We can't move offshore. We only work in areas we can drive to in a day or so.

There is a big difference between the big independents like CHK, and HK and the true small independents with a handful of staff. There are still a good number of independent geologists who contract with drillers for their own prospects. These are the guys who have been drilling the wells big companies can't be bothered with.

They will be devestated if Obamba gets his way.

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Permalink Reply by Todd M. Baker on May 6, 2009 at 4:47

KB: If Independents are producing the shale, who is?


Todd M. Baker

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Permalink Reply by The_Baron on May 6, 2009 at 4:51

Snake, you should do more reasearch and se what the small independents do pay.

Just look at what we pay in local propery taxes alone.

We have had to delay drilling a well once, because the driller refused to have his rig in a particlar parish at the time. We had to wait till after the new year. The ad-volerum tax was too high in that particualr parish we wanted to drill.

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Permalink Reply by Snake Stewart on May 7, 2009 at 15:07

Hello Baron,
I was speaking of the EXOM's and BP's leaving the US. I fully understand and am in agreement with the importance of the "small guys". They have been the ones that have kept working here when the big boys have been off in greener pastures makin' Kings richer. I pay too much stinkin tax and I dont own anything but part of my own hind end. The hottie wife claims to own that as well but I think I have some paperwork somewhere that says something about perscription and ten years or something like that......
Have a good one.

To all,
I claim advanced knowledge in only a few subjects outside of horse sense. This aint one of them so lighten up. Keep it easy unless you want me to go all.....Snake on somebody.(LOL) Sorry Parker, I couldnt help it.
I state up front that I mean no ill toward anyone. I care deeply for many of you guys that I just happen to be on the other side of the political aisle with.

As someone that is deeply engrained into the "below the $250,000 or whatever threshold" as those that will be completely unaffected by the tax increases..........(Yea , right!), I have never felt it was "fair" for someone else to pay my portion of whatever I may be doing at the time. My wife and I have just gotten to the point in our lives where it is economical enough to even file the long form for our taxes. Not exactly gettin' over on Uncle Sammy, am I ? Yet even I know that you have to gain wealth from somewhere if you intend to stay a leg up in this life.

If you arent born with the proverbial silver spoon in mouth, one must use fiscally sound reasoning and/or take initiative/risk to better oneself financially. Thats the American Dream isnt it ? Work hard, use your noggin, make all your dreams come true! Many make those tough decisions every day in hopes of realizing those dreams. I happen to not be one of those cats but hey, I understand the drive that one must have to advance up that ladder. I am a simple fella that may or may not benefit financially from the Haynesville Shale. I love life and view it as a most precious commodity. I dont own a business nor will I. Dont care to. No big financial miracles outta me.......

Yet I do benefit by itemizing on my taxes. Not much, but a benefit none the less. What do I do to deserve this benefit ? Several possible things come to mind. I either make more than the average person and qualify for shelter because of my larger burden of tax due to gain or lose more/have more expenses than the average person and qualify for shelter because of those losses/expenses. Am I wrong for taking these benefits ? Certainly not! Why then is it wrong for someone in the upper tax brackets, who own far more tax burden then I, to seek as much shelter as they can ? Is it easier for one in the higher brackets to pay 50% + in taxes because they have more ? If it were me, I wouldnt nor would you! Thats not wrong to feel like that either. I dont know anybody that actually pays their taxes thats freakin happy about paying their taxes.

It costs more to enforce/oversee the collection of these taxes each year then 85% of the rest of the worlds GDP. There is something horribly wrong with that picture.The Governments only (main) means of generating operating capital is through taxation and the printers at the U.S. mints. Neither are real good for our economy but we dont have much choice do we ? Business drives our economy. Not Government. Never has, never will. The Government performs a much needed service in regards to social services and infrastructure. But they cant be the driving force. They take from the taxable to promote/fund the different agendas that each controling part has while in control.But If the ability to get ahead in life and the drive it takes to get there, are cut down in favor of "bringing everyone else along too", there will no longer be any incentive to create the wealth, that business owners do, that is vital to our economy. If you tax everyone able, into extinction, who is left to tax ? Who then will carry the burden ?

Teach a man how to fish........or
Teach a man how to tax the fishing industry out of business for the greater good of mankind.....

Depending on ones view, do you want to fish or do you just want what the fishermans got, without actually fishing ?

Hope I didnt belittle anyone by trying to be too simplistic with this. I am a simple kinda fella. I been missin you guys. Have a good one.
Peace out!
Snake

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Permalink Reply by RAY on May 6, 2009 at 1:53

simple solution:

use natural gas to make coal burn cleaner.

finding a way to get it done might not be possible

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Permalink Reply by Joel on May 6, 2009 at 4:03

Where is the tax free income? If you're talking depletion, that adjusts for the fact that like a piece of equipment, the oomph pushing the oil/gas out of the formation (a condition that that they paid for when they got the mineral rights) gets used up. What is more to the point, this condition affects all operators, not just the 'independents' and should be applied to all, not just independents.

It is odd, but it is real. What happens when the pressure gets depleted too low is that they have to put on equipment to pull (oil) or suck/"compresss" (gas) the stuff up the hole. It's not as simple as depreciation (using up a machine that has 10 years economic life, etc.) so the calculation is different. But depletion is real and has economic effect just like a machine getting worn out. If you think about what is happening underground, a new formation essentially has a little pump that comes with it (formation pressure) that gets used up over time. People know that and the production rates and reserve calculations factor that in when they bid/buy the mineral rights - so they pay for it up front, and it gets used up over time. Classic depreciation style cost.


Best,

Joel

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