Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on December 13, 2008 at 15:15

North LA. I think I know where you are attempting to go with this line of questioning. And I do not think it possible to propose a scenario that gets you there. To your satisfaction. Is the 80 year old woman mentally competent? I have known some who were and some who were not. If I suspect that they are not, my policy is to ask if they have a family member who they rely on for counsel in legal matters. If so, I suggest that they contact me. I do not mind dealing with an intermediary if I feel it is someone who is ethical and capable of understanding the nature of the offer. Under certain circumstances, I suggest that they seek the services of an attorney. I do not recommend an attorney. I simply hope that whichever attorney they choose is competent and ethical. I find that being an independent landman affords me some ethical control in how I deal with clients and prospects. I prefer it that way. And I sleep just fine every night.

Permalink Reply by North LA on December 13, 2008 at 10:04

You really think it's going to be that big Jim? I just don't see it happening and I consider myself an optimist. I want you to be right and I want N. Louisiana to become the domestic Saudi Arabia. I want the redneck trucker hat to be associated with fossil fuel wealth rather than the turban:)

Permalink Reply by Skip Peel - Mineral Consultant on December 13, 2008 at 10:09

Nice thought. A "Gimme NG/CNG" hat. The potential is real. The political "will" is where the optimism peters out. Next week's featured discussion on the Main Page, "How To Grow A Backyard Garden".

Permalink Reply by North LA on December 13, 2008 at 13:06

I hope you're right. North Louisiana has needed something like this for a long time.

Permalink Reply by The_Baron on December 13, 2008 at 15:21

Do you actually believe this money will stay in north LA?

The idiot voters in this state voted down the admendment pertaining to the distribution of severance taxes.

I guantee, the bulk of this money will stay in south La, just like it always has.

Permalink Reply by Skip Peel - Mineral Consultant on December 13, 2008 at 15:27

Baron. And explanation of the amendment pertaining to distribution of severance taxes may be in order. Some were not paying attention then but may be willing to do so now. I hope many are beginning to pay more attention now as they have a stake in what is unfolding around them. We can't go back but we can hopefully make informed decisions in the future. The floor is yours.

Permalink Reply by The_Baron on December 13, 2008 at 15:44

Thank you skip,

From the Public affairs reasearch Council of Louisiana,

SITUATION
Severance tax revenue
The Constitution requires the state to give
parish governments a portion of the severance
taxes collected in each parish. It requires that
20 percent of the state severance tax on all
natural resources, other than sulfur, lignite
or timber, be shared with the parish of origin.
But, the amount each parish can receive is
capped at $850,000, adjusted annually for
infl ation. The current cap for the 2009 fi scal
year is around $875,000.
Local governments are prohibited from
levying a severance tax. The sharing of state
severance tax revenue, which goes back to
at least the 1921 Constitution, is intended to
help compensate parishes for wear and tear
on roads and bridges by oil and gas drilling
equipment and other related traffi c. The
present cap has been in place since 2007, when
it was increased from $750,000. In 2007, the
state collected $890 million of these severance
taxes and remitted nearly 4% back to the
parishes where the tax was generated. Oil and
natural gas collections account for almost 98
percent of all severance tax collections.
Parishes would have received $178 million if
the full 20 percent were distributed, but the
per-parish cap limited the actual distribution
to about $32 million. All but one of the 64
parishes received some severance tax revenue
(one received only $42), and 29 received the
maximum amount of $850,000.
Atchafalaya Basin Program
Programs to protect and restore the
Atchafalaya Basin are funded by annual
appropriations designated for Atchafalaya
Basin master plan projects identifi ed in Act
920 of the 1999 Regular Legislative Session.
That law scheduled $85 million in annual
appropriations through FY 2014, but did
not establish a permanent funding source or
guarantee the appropriations.
PROPOSED CHANGE
Severance tax revenue
The amendment would increase the amount of
severance tax revenue the state is required to
share with the parishes in which the severance
tax was generated. The maximum amount per
parish would be increased from $850,000 per
year (2007 dollars) to $1.85 million for fiscal
year 2009 and $2.85 million thereafter. Each
year after 2010, the cap would be adjusted
upward for inflation. The amendment also would dedicate 50
percent of the additional severance tax
revenue parishes receive after July 1, 2009, to
transportation projects eligible to receive funds
from the Parish Transportation Fund.

Permalink Reply by The_Baron on December 13, 2008 at 15:45

In a nutshell, The parishes in NW LA will recieve only a token amount of severance taxes from the HA shale. In fact, many of the NW LA parishes are already maxed out.

Permalink Reply by intrepid on December 16, 2008 at 10:45

Barron: "In a nutshell, The parishes in NW LA will recieve only a token amount of severance taxes from the HA shale. In fact, many of the NW LA parishes are already maxed out."

This is very bad public policy.

Permalink Reply by The_Baron on December 16, 2008 at 17:21

I agree its bad policy. Thats why i voted yes. Unfortunatly, the no's prevailed.

Permalink Reply by North LA on December 13, 2008 at 18:01

New Orleans specifically.

I grew up close to Monroe, LA which had at one time the largest gas fields in the U.S. Up until the early 70s Monroe had the lowest energy costs in the county because the city had their own power station fueled by city owned natural gas. Electric bills were literally cents a month and industry came to Monroe because of cheap costs. Well in the mid 70s a crooked politician in Monroe announced the city would start selling their gas to pipelines to ship to the Northeast because the city would make more money from the sales then from power generation. I'm sure you can figure out how that all worked out. This crooked politician somehow became a millionaire during the late 70s and early 80s. I don't have any faith in LA politicians.

Permalink Reply by The_Baron on December 16, 2008 at 17:22

Maybe we need to reinstate the poll tests to keep out the uneducated voters.

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