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Hagan outraged by tax system for drilling industry
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Rep. Robert F. Hagan, D-Youngstown. (AP Photo/Larry Phillips)
Staff report
COLUMBUS
State Rep. Robert F. Hagan of Youngstown, D-60th, expressed outrage Monday with a news report that Ohio’s oil and gas companies are paying taxes on the extraction of the natural resources based on an honor system.
The report, published Monday in The Vindicator, cited discrepancies in gas-tax revenue and production figures by the Ohio Department of Taxation, the Ohio Department of Natural Resources and the Ohio Oil and Gas Association.
“This is a real failure of government,” Hagan said.
From 2000 through 2009, OOGA, which represents the industry, reported more natural-gas production than did the ODNR — the agency responsible for regulating wells.
In 2010, it was the opposite: ODNR reported more production than did the association.
Tom Stewart, executive vice president of the oil and gas association, said he estimates production by examining “first-purchaser” figures, which represent the amount of natural gas bought at each well site.
“We try to zero in on what the best number is to report what the production is. I think we get it pretty close,” Stewart said.
State officials said they don’t have the authority to go to the wells and check the meters against the reports, and there is no explanation for why there are different numbers.
“We just process the tax returns and allocate the money to ODNR’s oil and gas program,” said Gary Gudmundson, spokesman for the taxation department.
Hagan likened the system to allowing the general public to decide how much they should pay in taxes.
“Let’s put Ohio taxpayers on the same playing field as the oil and gas companies,” he said. “We will take Ohioans for their word on what kind of money they make, just as we currently do with oil and gas drillers.”
Comments
Oh ! How wonderful for them ! I'm with you Bob 110% ! I want to pay what I want too . Not being allowed on ones land is totaly HYPRCORSE !!! Do yo have a Paper and Pen? Write a Law like you do for everything else Republicans ! I'll be watching this for sure. How do we know the Land Owner is getting his fair share of the product money ???? I don't trust any COMPANY ! Nor REPULICAN THIEVES!!!!
Where was Hagan's outrage when so many of Obama's appointees were breaking the law and not paying their taxes. Oh that's right it wouldn't have brought out the kool-aid drinkers like timOthy. Hagan has no facts that these companies did anything wrong. The fact that Hagan, our elected(LOL) official has done nothing about it to this point just shows that he has no clue, and is not doing his job.
Its time old Buckwheat gets RETIRED. He really doesn't have a clue, He's all talk about things that he claims he's fighting for . Like the gas prices episode, him and Goofyberry did last year at the gas station. With these two its the SAME OLD, SAME OLD, nothing else.
Lets tax the hydrocarbons at the sales point for the end user. There will be no escaping the tax man when this is done. We can start with four dollars per thousand cubic feet for natural gas and tack on a dollar a gallon for gasoline and diesel fuel. Let us not shortchange Ohio by inaction. Taxation is the repatriation of the money back to the people.
Stop Did you taken by a Green energy scam,so that now you want everyone to pay for your stupidity!!!!! Time for you to get over it .
Can't believe what I see here in the Valley. Most other areas would embrace this opportunity and try work with Oil/Gas industry to mutual benefit. Instead the ruling political class is doing everything possible to hinder this economic opportunity. This is the same bunch of wizards or their clones that brought us, Commuter Aircraft Corp, US Airship, Lake to River Canal, Avanti Motorcars, etc. I guess they oppose this opportunity for two reasons. 1. They can't take credit for it and/or 2. They can't direct it to benefit of their political allies.