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

Public Act 82 of 2014

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”).   Official Text and Analysis.
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
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.
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
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.
Received in the House on March 19, 2014
Passed 82 to 28 in the House on March 20, 2014 To concur with the Senate-passed version of the bill.
Signed by Gov. Rick Snyder on April 1, 2014

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