Comments for Chamber backs horizontal tax exemption at http://www.acadianabusiness.com , comment 1 to 1 out of 1 comments http://www.acadianabusiness.com Wed, 22 May 2013 00:20:45 +0100 FeedCreator 1.7.3 http://www.acadianabusiness.com/business-news/acadiana-business/12195-chamber-backs-horizontal-tax-exemption#comment-27484 This is a travesty. First, the exemption granted horizontal production applies to both oil as well as gas wells and extends to any and all wells drilled in Louisiana--not just those in the Haynesville Trend. At a time when this state needs every dime of revenue obtainable, taxing horizontal production is both a necessity and a requirement. Second, the exemption has been interrupted to apply to existing wells that are reworked using the horizontal technique. As a result, thousands of producing wells in Louisiana have been/or are reworked by horizontal drilling increasing the wells production which is now(since it has been reworked horizontally) exempted from severance tax. Anyone or group endorsing the continuation of this exemption is one example of how out of touch with reality some people(even well meaning business owners)are with respect to the fiscal condition of Louisiana. This exemption was granted in 1994, under the Foster administration. At that time, horizontal drilling was a "pipe dream". Foster's attitude was this will present an opportunity to keep Louisiana R&D on the cutting edge of drilling. However, now, the method is a proven drilling technique and coupled with hydraulic fracking, has provided the vehicle for increased production from heretofore fields deemed non-productive. This exemption should be repealed. The $400-600 million dollars a year the state will gain from the repeal is desperately needed. - Greg Foreman Tue, 04 Dec 2012 13:29:14 +0100