Alliance Presents Comments to House Ways & Means on Harmful Tax Provisions to Employment

Sept. 13, 2021

** The following analysis was prepared in September of this year at the request and for the benefit of several Members of Congress from Texas as the House Ways and Means Committee was preparing for its markup of the Reconciliation Bill. **

Re: Negative Employment Effects of Eliminating Intangible Drilling Costs and Percentage Depletion

The Texas Alliance of Energy Producers has prepared an employment impact estimate that would result from the repeal of Intangible Drilling Costs (IDCs) in its current form, and the elimination of the percentage depletion deduction. The methodology in terms of the ten-year time frame of the estimates is employed to make the data consistent with a study conducted by Rystad Energy for the American Petroleum Institute (API) that quantifies the potential negative employment impacts of repealing IDCs and raising the corporate tax rate. However, the estimates calculated herein focus on IDCs and the elimination of the percentage depletion deduction.

Alliance Presents Comments to EPA Small Business Advocacy Review on Methane Proposal

Ms. Wiggins:

Thank you for the opportunity to provide written comments to the “Pre-Panel Outreach Meeting” conducted by EPA on the rulemaking, “Oil and Natural Gas Sector New Source Performance Standards,” on Tuesday, June 29, 2021. I sincerely appreciate EPA’s invitation to participate, and the information provided to participants to evaluate potential rule changes and the process for their amendment.

Alliance Presents Comments to US Senate Finance Committee on Percentage Depletion, IDCs

June 9, 2021

The US Senate Finance Committee met in Washington in late May to consider Chairman Ron Wyden’s (D-OR) Clean Energy for America Act which, among other things, seeks to change various tax provisions for US independent oil and gas companies, both small and large.  Most notably, the bill would fully eliminate the percentage depletion deduction for small independent operators, and would change the deduction for Intangible Drilling Costs (IDCs) from full 100% deduction for those costs in year one, to spreading them out over a five-year period of time.  The Alliance made the point to the Committee that eliminating percentage depletion and altering the treatment for intangible drilling costs would cost Texas jobs, reduce industry investment, lower production, reduce tax revenues and economic activity to Texas and its producing regions, and reduce the level of energy independence we worked so hard to achieve.  Our comments can be found here on our website.

Re: Oil and Gas Production on Federal Lands and Waters

April 15, 2021

To: The US Department of the Interior
From: Jason Modglin, President, Texas Alliance of Energy Producers

Comments submitted to: [email protected].

The Texas Alliance of Energy Producers (the Alliance) and our members appreciate the opportunity to provide comment on the management of oil and gas leasing and production on federal lands and waters. The Alliance represents approximately 2,600 member companies and individuals, primarily in the upstream (exploration and production) segment of the oil and gas industry. While there is relatively little in the way of federal oil and gas production in Texas, we remain concerned about a potential permanent moratorium on future federal oil and gas leasing.