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Numeric List Accountability Health & Human Services Justice System Education State Employees Taxation & Revenue Wildlife & Environment Worker & Public Safety Tribal Affairs Senior Citizens	HB 54: Tax Incentive for Tertiary Production 2003 General Session Sponsor Rep. Clarene Law (R-H23, Jackson); co-sponsor Sen. Bill Hawks (R-S29, Casper) Legislator votes by regions Big Horn Basin Casper-Area Cheyenne-Area Gillette-Area Lander/Riverton-Area Northeast/East Central Sheridan-Area South Central Southwest West Central          HB 54 extended the severance tax break for tertiary oil and gas production that expired in 2001 (although production qualifying for the break will continue to receive the tax reduction for five years, even without an extension). The tax break reduces the severance tax on tertiary production from the usual level of 6% for oil and gas to 4%, a 33% reduction.          The Legislative Service Office estimated the loss of severance tax revenues from the break for tertiary production at $16 million from 1990 through 1993. Subsequently, the annual Joint Report of Operations from the Wyoming Department of Revenue - Mineral Tax Division and the Wyoming Oil and Gas Conservation Commission put the losses at $10.8 million for fiscal years 1994 through 2002.          Three tertiary production projects qualified for the tax break in FY 1996; 22 in FY 97; three in FY 98; five in FY 1999; none in FY 2000; one in FY 2001; and none in FY 2002. From 1997 forward, all the qualifying projects are in Park County, primarily conducted by Marathon.          Proponents of the tax reduction argue it is necessary to maintain production from Wyoming's aging oilfields. Renewal of the extension is being promoted by advocates of a CO2 pipeline, which will transport CO2 for tertiary recovery.          Opponents argue that the investments will be made without regard to the tax rate. The Legislature's own study of severance tax breaks for oil and gas, conducted by the University of Wyoming, found that such breaks are ineffective in maintaining production or jobs, but do result in significant losses to the state's treasury.          The study can be viewed at http://w3.uwyo.edu/~mkunce/ExecSum.pdf (the executive summary) and, http://w3.uwyo.edu/~mkunce/StateReport.pdf (the entire study).          HB 54 passed the House 50-9 (one excused).          The Senate amended HB 54 to specify that no tax break would be allowed in any month when the price received by the producer for tertiary production is $27.50 per barrel or higher.          With this amendment, the Senate passed HB 54, 20-10.          The votes listed below are Third Reading (final passage) votes in the House and Senate.          A YES vote means the legislator supported extending severance tax breaks for tertiary oil and gas production.          A NO vote means the legislator did not support extending these severance tax breaks. Bighorn Basin Legislators House 3rd 2/6/03 Senate 3rd 2/27/03 S 18 Hank Coe (R) Yes H 24 Colin Simpson (R) Yes H 50 Pat Childers (R) Yes S 19 Laness D. Northrup (R) Yes H 25 Alan Jones (R) Yes H 26 Elaine Harvey (R) Yes S 20 Gerald E. Geis (R) Yes H 27 Jane Wostenberg (R) Yes H 28 Micheal Baker (R) Yes Casper-Area Legislators House 3rd 2/6/03 Senate 3rd 2/27/03 S 27 John Barrasso (R) Yes H 35 Roy Cohee (R) Yes H 36 Liz Gentile (D) Yes S 28 Keith Goodenough (D) No H 56 Tom Walsh (R) Yes H 57 Thomas A. Lockhart (R) Yes S 29 Bill Hawks (R) Yes H 37 Steve Harshman (R) Yes H 59 Mary Gilmore (D) No S 30 Charles K. Scott (R) No H 38 Bob Brechtel (R) Yes H 58 Ann Robinson (D) Yes Cheyenne-Area Legislators House 3rd 2/6/03 Senate 3rd 2/27/03 S 4 April Brimmer Kunz (R) Yes H 7 Tony Ross (R) Yes H 41 Becket Hinckley (R) Yes S 5 John Hanes (R) Yes H 8 Larry Meuli (R) No H 42 Pete Illoway (R) Yes S 6 Rich Cathcart (D) No H 9 Wayne Johnson (R) Yes H 10 Rodney "Pete" Anderson (R) Yes S 7 Kathryn Sessions (D) Yes H 11 Wayne Reese (D) Yes H 43 Ed Prosser (R) Yes S 8 E. Jayne Mockler (D) Yes H 12 Layton Morgan (D) Yes H 44 Floyd Esquibel (D) No Gillette-Area Legislators House 3rd 2/6/03 Senate 3rd 2/27/03 S 23 John Hines (R) Yes H 31 Jene Jansen (R) Yes H 52 George McMurtrey (R) Yes S 24 Richard A. Erb (R) Yes H 32 Jeff Wasserburger (R) Yes H 53 Frank Latta (R) Yes Lander/Riverton-Area Legislators House 3rd 2/6/03 Senate 3rd 2/27/03 S 25 Cale Case (R) No H 33 Harry Tipton (R) No H 54 Del McOmie (R) Yes S 26 Robert A. Peck (R) Yes H 34 Frank Philp (R) Excused H 55 David Miller (R) Yes Northeast/East Central WY Legislators House 3rd 2/6/03 Senate 3rd 2/27/03 S 1 Bill Barton (R) Yes H 1 Mark Semlek (R) Yes H 2 Ross Diercks (D) Yes S 2 Jim Anderson (R) Yes H 5 James C. Hageman (R) Yes H 6 Dave Edwards (R) Yes S 3 Curt Meier (R) Yes H 3 Deborah Alden (R) No H 4 Edward A. Buchanan (R) Yes Sheridan-Area Legislators House 3rd 2/6/03 Senate 3rd 2/27/03 S 21 Bruce Burns (R) No H 29 Jerry Iekel (R) Yes H 51 Rosie Berger (R) Yes S 22 John Schiffer (R) No H 30 Jack Landon (R) No H 40 Doug Osborn (R) Yes South Central WY Legislators House 3rd 2/6/03 Senate 3rd 2/27/03 S 9 Mike Massie (D) No H 13 Jane Warren (D) Yes H 45 Lorna Johnson (D) No S 10 Irene Devin (R) Yes H 14 Phil Nicholas (R) Yes H 46 James Slater (R) Yes S 11 Bill Vasey (D) Yes H 15 George Bagby (D) Yes H 47 Kurt Bucholz (R) Yes Southwest WY Legislators House 3rd 2/6/03 Senate 3rd 2/27/03 S 12 Rae Lynn Job (D) No H 48 Marty Martin (D) Yes H 16 Pete Jorgensen (D) Yes S 13 Tex Boggs (D) No H 17 Fred Parady (R) Yes H 60 Bill Thompson (D) No S 14 Larry Caller (D) Yes H 18 Mick Powers (R) Yes H 39 Chris Boswell (D) No S 15 Ken Decaria (D) No H 19 Owen Petersen (R) Yes H 49 Saundra Meyer (D) Yes West Central WY Legislators House 3rd 2/6/03 Senate 3rd 2/27/03 S 16 Delaine Roberts (R) Yes H 20 Stan Cooper (R) Yes H 21 Randall Luthi (R) Yes S 17 Grant Larson (R) Yes H 22 Monte Olsen (R) Yes H 23 Clarene Law (R) Yes See Southwest Region for H 16 and S 12