The week of May 12, the Senate was expected to consider House Resolution 3474, the tax extenders bill, which extends until the end of 2015 a number of tax relief provisions.
Senator James Inhofe (R-OK) offered an amendment to revive a provision to suspend net income limitation on percentage depletion for oil and gas marginal wells.
In support, NSWA Chairman Mike Cantrell issued the following statement:
“On behalf of the National Stripper Well Association, I would like to thank you for continuing to champion the cause of marginal well producers across the United States.
“We strongly support your amendment to H.R. 3474 to suspend the taxable net income limitation on percentage depletion for marginally-producing oil and natural gas wells. The net income limitation prohibits the most marginal wells, the “mom and pop” producers that NSWA represents, from taking advantage of the percentage depletion allowance.
“Percentage depletion is a critical tool that extends the economic lifespan of low-volume wells by encouraging producers to continue operating marginal wells instead of cementing them in. Efforts to limit percentage depletion on oil and gas from marginal wells only serve to reduce marginal well production, reduce domestic oil supply, and increase our need for foreign oil. Likewise, NSWA strongly supports your amendment and applauds your goal of strengthening our country’s energy and economic security.
“The NSWA was established in 1934 to represent the interests of marginal well producers and operators before Congress, the Administration, and federal agencies. It also represents affiliated professionals and stakeholders, including consulting geologists, petroleum engineers, landmen and lease brokers, drilling and workover contractors, bank and other financial institutions, accountants, attorneys and royalty owners.
“Our members continue to recognize you as an unwavering champion for the industry. We appreciate your keen understanding of our issues and thank you for your strong support.”