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2013 House Bill 4885: Cut tax on oil and gas from "enhanced recovery"

Public Act 82 of 2014

  1. Introduced by Rep. Aric Nesbitt (R) on June 20, 2013, to reduce the “severance tax” or royalty paid to the state on oil and gas extracted from state land to 3.3 percent for oil and 3 percent for gas and oil extracted using “enhanced recovery” technology. Note: This is not the same as hydraulic fracturing (“fracking”).
    • Referred to the House Energy and Technology Committee on June 20, 2013.
      • Reported in the House on February 4, 2014, with the recommendation that the substitute (H-2) be adopted and that the bill then pass.
    • Substitute offered in the House on February 12, 2014. The substitute passed by voice vote in the House on February 12, 2014.
  2. Passed 85 to 25 in the House on February 13, 2014, to reduce the “severance tax” or royalty paid to the state on oil and gas extracted from state land to 4 percent for hydrocarbons extracted using “enhanced recovery” technology, which injects carbon dioxide into wells to force out more product (this is different from hydraulic fracturing.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on February 18, 2014.
    • Referred to the Senate Energy and Technology Committee on February 18, 2014.
      • Reported in the Senate on March 5, 2014, with the recommendation that the substitute (S-1) be adopted and that the bill then pass.
    • Substitute offered in the Senate on March 13, 2014. The substitute passed by voice vote in the Senate on March 13, 2014.
    • Amendment offered by Sen. Hoon-Yung Hopgood (D) on March 19, 2014, to not grant the proposed lower tax rate to a driller convicted of antitrust violations. The amendment passed by voice vote in the Senate on March 19, 2014.
    • Amendment offered by Sen. Hoon-Yung Hopgood (D) on March 19, 2014, to prohibit oil and gas drillers who are late paying the state “severance tax” on extracted minerals from bidding on new gas and oil leases for two years. The amendment failed 13 to 25 in the Senate on March 19, 2014.
      Who Voted "Yes" and Who Voted "No"

  4. Passed 25 to 13 in the Senate on March 19, 2014, to reduce the “severance tax” or royalty paid to the state on oil and gas extracted from state land to 4 percent for hydrocarbons extracted using “enhanced recovery” technology, which injects carbon dioxide into wells to force out more product (this is different from hydraulic fracturing). The current tax ranges from 5.0 to 6.6 percent.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the House on March 19, 2014.
  6. Passed 82 to 28 in the House on March 20, 2014, to concur with the Senate-passed version of the bill.
    Who Voted "Yes" and Who Voted "No"

  7. Signed by Gov. Rick Snyder on April 1, 2014.

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