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Jack Dalrymple on Energy & Oil |
The rules come after Dalrymple and other state regulators instituted new rules last fall requiring every barrel of crude be filtered for dangerous types of natural gas. "It's helpful to see these as one part of the overall safety equation," he said. "Still, it's important to see that North Dakota crude is not different from other light, sweet crudes around the country."
There is hereby imposed an excise tax, to be known as the "oil extraction tax", upon the activity of extracting oil from the earth. The rate of tax was 6.5% and this bill reduces that rate to 5% of the gross value at the well of the oil extracted. The 5% rate also applies to secondary or tertiary recovery projects, where the previous tax was 4%. However, if the average price of a barrel of crude oil exceeds the trigger price of $90 for three months, then the tax rate is set at 6%. Previously the trigger price had to exceed $90 for five months.
Our production of natural gas has also more than doubled from two years ago. We have encouraged the gathering of natural gas and have also doubled processing capacity since the end of 2010. By 2014 we expect to have capacity to process 1.36 billion cubic feet of natural gas per day. We are also promoting the use of natural gas at the well site instead of diesel fuel, and today we are seeing a leveling off of the percentage of natural gas that is being flared.
The project is a good example of private enterprise developing an opportunity that benefits both oil producers and individual consumers.
Tesoro's Mandan refinery processes crude oil that is transferred by pipeline from western ND.
North Dakota leads the nation in the number of blender pumps that offer mid-level blends and gasoline blended with up to 85% ethanol (E85). The EPA should do its part to expand market access for blended fuels by approving gasoline blended with 15% ethanol (E15) for use in all vehicles.
Congressional Summary:Amends the Internal Revenue Code to extend through 2016 the tax credit for electricity produced from wind, biomass, geothermal or solar energy, landfill gas, trash, hydropower, and marine and hydrokinetic renewable energy facilities.
Proponent's Comments (Governor's Wind Energy Coalition letter of Nov. 15, 2011 signed by 23 governors):Although the tax credit for wind energy has long enjoyed bipartisan support, it is scheduled to expire on Dec. 31, 2012. Wind-related manufacturing is beginning to slow in our states because the credit has not yet been extended. If Congress pursues a last minute approach to the extension, the anticipated interruption of the credit's benefits will result in a significant loss of high-paying jobs in a growing sector of the economy. We strongly urge Congress to adopt a more consistent and longer-term federal tax policy to support wind energy development, such as H.R. 3307.
The leading wind project developers and manufacturers are slowing their plans for 2013 and beyond due to the current uncertainty. The ripple effect of this slow down means reduced orders for turbines and decreased business for the hundreds of manufacturers who have entered the wind industry in our states. When Congress allowed the tax credit to expire in 1999, 2001, and 2003, the development of new wind installations dropped significantly, between 73% and 93%, and thousands of jobs were lost. Providing renewable energy tax credits in order to provide consistency with conventional energy tax credits is the right policy to move the nation forward in an energy sector that offers global export opportunities and the ability to modernize a segment of our electric production infrastructure.
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