Sept 9, 2021
KIOGA EXPRESS
Your Source for Updated and Breaking Oil & Gas News For Members of the Kansas Independent Oil & Gas Association
KIOGA Members:

           Greetings!   KIOGA continues to stay engaged providing updates and resources for the Kansas oil and gas industry.



Congress Begins Work on Budget Reconciliation – Critical Industry Tax Provisions at Risk

Congress returns to Washington to begin the fall session on September 13th and is set to begin work on the Budget Reconciliation Bill. The FY 2022 budget resolution passed on August 27th directs 13 House and Senate Committees to write and markup their legislative components of the reconciliation Package by September 15th. To achieve this, each committee gets an instruction that they use to develop legislative language that will result in spending and/or revenue raised to achieve the $3.5 trillion annual spending target. Once the multiple bills are marked up and passed by the committees, the House Budget Committee will then bundle them together into a single mammoth bill prior to a vote by the House, which is likely to occur during the week of September 20th

The U.S. House Ways and Means Committee – the tax writing committee that would consider elimination of percentage depletion and IDC – is scheduled to meet September 9th and 10th, and then again on September 13th and 14th, to review and markup its contribution to the reconciliation package.

Given the tight timeframes, it is expected Senate Democrats will work with their House Democratic counterparts behind-the-scenes to come to agreement on various policy and spending items. 

Last week, KIOGA President Edward Cross communicated with 17 key federal policymakers (including the entire Kansas delegation) concerning the Budget Reconciliation Bill. Cross provided them a letter expressing KIOGA opposition to the bill and urging them to vote NO on the Budget Reconciliation Bill. He also provided them a Methane Tax Summary. In addition, Cross submitted a letter to the U.S. Senate Environment & Public Works (EPW) Committee detailing KIOGA opposition to a methane emissions tax. If you would like to see those documents, please let us know (holly@kioga.org) and we will forward you a copy.

All the policymakers contacted communicated back that they received the information and were very grateful. Several policymakers said "The information you sent will be helpful during the markup next week". The U.S. House Ways & Means (W&M) Committee will meet on September 9th and 10th and then again on September 13th and 14th to review and markup its contribution to the reconciliation package. The information KIOGA provided several key members on the W&M Committee will be used by committee members to oppose the reconciliation package. 

KIOGA President Edward Cross had a good conversation with staffers from Congresswoman Davids (D-KS) office earlier this week. He explained that measures like those in the Budget Reconciliation Bill will only drive up energy costs. Such measures are social inequities because those who are least able to afford higher energy costs are hurt the most. 

KIOGA President Edward Cross also had a methane tax editorial run in the Kansas City Star on September 8th. You can see that editorial HERE. In addition, Cross talked to the Tax Foundation earlier this week. They have a new study released last week on the tax implications of Biden’s budget proposals and the budget reconciliation bill. You can see that study HERE. KIOGA shared this study with key policymakers.

Finally, KIOGA President Edward Cross had a separate editorial run in 17 newspapers across Kansas over the Labor Day weekend. You can see that editorial HERE. 
 
KIOGA 2021 Annual Convention Photos and Pompeo Keynote Address Video Available on KIOGA Website
            Anyone interested in seeing photos from the KIOGA 2021 Annual Convention and/or watch former U.S. Secretary of State Mike Pompeo’s keynote address can do so by visiting the KIOGA website at www.kioga.org. You can see the photos HERE. You can watch the Pompeo keynote address HERE.