• Energy Tax Facts
  • 16 Jun 21

The Oklahoman: Your turn: President Biden’s energy plan penalizes oil and gas royalty owners

By Richard C. Lerblance, a member of the Pittsburg County Democrat Club.

…Royalty payments are paid to thousands of Oklahomans on a monthly basis from oil and gas production. As a matter of fact, the May edition of ROAR, a publication produced by the National Association of Royalty Owners, listed Oklahoma as having 2,537,250 royalty owners in Oklahoma. These are men and women that live next door to you and me and not large oil and gas corporations (“Big Oil”) that the president and Congress want to tax and put out of business.

As a matter of fact, in addition to the proposals listed above, there is a move in Congress to eliminate percentage depletion from the royalty owners. This is the only tax break that the royalty owners receive on their oil and gas income. The president stated that he wanted to take away the incentives that “Big Oil” are receiving. Mr. President, there are 2,537,250 residents in Oklahoma that you are penalizing by eliminating the percentage depletion. If percentage depletion is removed, it would result in a tax increase for many of the royalty owners that make less than $400,000 per year. The president wants to tax those who make more than $400,000 per year, but he is hurting the little guy if the percentage depletion is removed.

As I mentioned above, I am a Democrat, and I voted for Biden; however, this is one issue that the president is proposing that I and the Pittsburg County Democrat Club cannot support. …

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