Statewide WV

In February West Virginia Gov. Jim Justice announced a plan to eliminate the state’s personal income tax. In order to replace the $2.1 billion received annually from the personal income tax, Justice would raise other taxes, including a tiered system that raises the state’s oil and gas severance tax…potentially by a lot (see WV Gov. Floats Plan to Eliminate Income Tax, Raise Severance Tax). Justice faced opposition on a number of elements in his plan, not just the severance tax. Yesterday the governor assembled key lawmakers in one room to try and hammer out a compromise. So far it hasn’t worked.
Read More “WV Gov. Justice Revises Severance Tax Plan Rates Down”

In February West Virginia Gov. Jim Justice announced a plan to eliminate the state’s personal income tax. In order to replace the $2.1 billion received annually from the personal income tax, Justice would raise other taxes, including a tiered system that potentially raises the state’s oil and gas severance tax…potentially by a lot (see WV Gov. Floats Plan to Eliminate Income Tax, Raise Severance Tax). We were surprised to read the Gas and Oil Association of West Virginia (GO-WV), the leading trade group for our industry, seemed at least willing to entertain the graduated severance tax concept, not rejecting it out-of-hand (see WV O&G Keeping an Eye on Gov’s Plan to Increase Severance Tax). Two oilfield services companies clearly are not lining up with GO-WV, blasting Justice’s plan to use a graduated severance tax as a jobs- and shale-industry killer.
Read More “WV OFS Cos. Call Gov. Justice Severance Tax Plan a Jobs Killer”

Conventional (and maybe shale) oil and gas drillers in West Virginia need to be aware of a late-breaking amendment that will create a new fee (we’d call it a tax) of $100 per year for unplugged wells producing 10 Mcf (10,000 cubic feet) of natural gas. According to the amendment’s sponsor, Sen. William Ihlenfeld II (D-Ohio County), roughly 13,000 wells statewide fit that classification and would generate an extra $800,000 per year for the Department of Environmental Protection’s Office of Oil and Gas.
Read More “WV Amendment Creates New $100/Yr Unplugged Well Tax”

We have to confess we’re not impressed with West Virginia U.S. Senator Joe Manchin (Democrat). We had hoped he might be somewhat independent from the radicals in his own party and provide some balance to an out-of-control leftist agenda being pushed by Chuck Schumer and Joe Biden. Manchin is failing in that regard. He’s just another toady for his party. (We’re not surprised.) The latest evidence that Joe Manchin is not the “man of the people” and “conservative/moderate” Democrat he claims to be comes from his opposition to WV Gov. Jim Justice’s plan to phase out the state income tax–which does have implications for the shale industry.
Read More “Democrats, Incl. WV Sen. Joe Manchin, Block WV Income Tax Cut”

In February West Virginia Gov. Jim Justice announced a plan to eliminate the state’s personal income tax. Who wouldn’t love that idea? But in order to replace the $2.1 billion received annually from the personal income tax, Justice would raise other taxes, including a tiered system that potentially raises the state’s oil and gas severance tax (see WV Gov. Floats Plan to Eliminate Income Tax, Raise Severance Tax). We don’t like that idea so much. However, the Gas and Oil Association of West Virginia (GO-WV) was, at the time, cautiously optimistic. GO-WV continues to closely monitor the bill’s progress. Has their attitude changed?
Read More “WV O&G Keeping an Eye on Gov’s Plan to Increase Severance Tax”