| Show I we saw CW it coming It was inevitable that legislation be pro proposed during dur dur- lug ing this session of the State te Legislature which would increase the severance tax on oil production in Utah 1 n during a period when most difficult operating condItions con conditions con con- and all aU added costs involved have made the search for oil in this state state- an extremely high gamble Added Added taxes on resource development and production production tion always vas seem logical to many who do not always see what hardships hardships might develop J At the present time timo the oil and gas industry is al alJ already already al- al re ready dy paying a a. severance veranCe tax which h is twice as great as that applied to any other natural resource in Utah In addition the total average tax burden of per barrel of oil in Uta Utah is substantially higher than the average average av av- av crago of 20 oth other r producing oil states where the average tax per barrel is about At the pres present nt time the average tax per barrel in neighboring Colorado is 13 He per barrel On t the e other hand Wyoming's tax is fa lOSe per barrel To make the situation more difficult we must nize nizo that exploration work in southeastern Utah and other areas arenA of the state is extremely expensive in com com- comparison comparison parison with many other states Gr Great at depths of oil- oil bearing formations unbelievably rough terrain to work in Jn and distance from major oil ail servicing renters contrIbute contribute contribute con con- tribute to the high expense h here re Utah Uta h is ow the ranking state in oil production and is receiving many benefits from this production It has b been en reliably estira- estira ed cd that this th total taxes paid by bythe bythe tb the producing and pipe tUg ing segments of the oil industry will exceed 7 7 million for 1960 1900 This is la new income that did not have n a few years ago ngo In addition approximately 2000 are now employed directly by the oil oU producing and exploring segments It is easy to see what oil on exploration and U development development develop develop- elop ment has mean meant means to Moab Cortez and andr r many other communities around the Four Corners Comers Any ATlY Increase In Uta Utah's s 's severance tax on oil production tin tion would only discourage additional 1 exploration work which is a ti prerequisite of new Without step up ping-up exploration work now just beginning ginning again here hereafter hereafter hereafter after a very slow winter period we cannot hope to seethe see seethe the oil-gas oil resource potential of Southeastern Utah developed developed developed de de- to its fullest |
