Mike Cantrell, NSWA Chairman
On September 16th, we (the National Stripper Well Association) had a good breakfast event in Washington, DC, with Senator Ron Wyden (D-OR) Chairman of the Senate Finance Committee.
Our mission for the trip was to keep a dialogue open with him and to continue to discuss percentage depletion. I think we accomplished our mission. The next day, Wednesday, Sept. 17th, Senator Wyden chaired a Senate Finance Committee hearing on energy tax provisions. While the hearing dealt primarily with keeping tax subsidies for wind and solar energy production, Sen. Wyden did mention his compromise legislation with Senator Coats that kept oil and natural gas tax provisions intact. I doubt this would have been on his mind, if we had not reminded him of it the day before.
I have to tell you after spending two days with Congressional members and staff on Capitol Hill, we are failing in our efforts to keep percentage depletion off the chopping block in the tax reform discussion. Republican staffers have told us privately that percentage depletion will be eliminated, while IDCs are “probably okay.”
We have seen percentage depletion bargained away in comprehensive tax reform drafts – three times.
This is a situation the NSWA must correct if we are to retain percentage depletion. Be looking for a letter from me in the coming months outlining our battle plan for the future.
Many of you are responsible for making the NSWA a relevant, functioning association. For years it was a name-only organization. While that is something we can all be proud of, it’s not nearly enough.
What I will suggest in the coming months is no reflection on all the good work that has brought us where we are today.
I am only saying that percentage depletion, while it's on life support now, may soon be a casualty of comprehensive tax reform if we don’t undertake a campaign to save it.