Sept 24, 2021
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.

Federal Budget Reconciliation Process Puts Oil & Gas Tax Provisions at Risk – KIOGA on the Ground Working to Protect Independent Oil & Gas Producers

Earlier this week, KIOGA President Edward Cross joined a team from the Domestic Energy Producers Alliance (DEPA) in meetings with several key federal policymakers in Washington, D.C. to talk about the reconciliation bill. Cross thanked members of the House Ways & Means (W&M) Committee who supported our position on percentage depletion and IDCs and were successful in retaining those provisions in the W&M markup of the reconciliation bill. Cross also urged all the policymakers to keep the W&M committee position on these tax provisions. The environmental community is expected to push hard to try to change the W&M position on these tax provisions. KIOGA will stay vigilant throughout the remainder of the reconciliation process to keep the W&M markup retaining these critical tax provisions.

On September 21st and 22nd , KIOGA met with Minority Leader  Kevin McCarthy  (R-CA), House Minority Whip  Steve Scalise  (R-LA), Representative  Elise Stefanik  (R-NY) – Chair of the Republican House Conference. We will also meet with several members of the House Energy Action Team (HEAT) including Representatives  Ron Estes  (R-KS),  Jeff Duncan  (R-SC),  MarkWayne Mullin  (R-OK),  Kelly Armstrong  (R-ND),  Lauren Boebert  (R-CO), and  Steve Palazzo  (R-MS). HEAT is a coalition of lawmakers in Congress focused on promoting energy policies that address energy pricing, create new job opportunities, and strengthen our national security through promotion of American energy independence. 

On the House Democrat side, KIOGA met with members of the House Democrat Oil & Gas Caucus including caucus chair Vicente Gonzales (D-TX) and caucus members Filemon Vela (D-TX), Henry Cuellar (D-TX), Colin Allred (D-TX), Marc Veasey (D-TX), and Lou Correa (D-CA). After our meeting with the House Democrat Oil & Gas Caucus, Chairman Gonzales said he would draft a letter to be signed by members of the caucus and send it to Senator Manchin on the Senate side. The House Democrat Oil & Gas Caucus Letter said . . .

We firmly believe that the budget reconciliation bill should not unduly disadvantage any industry, and oppose the targeting of U.S. oil, natural gas, and refining with increased taxes and fees and the exclusion of natural gas from clean energy initiatives. These inequitable policies will cost American jobs, move America farther away from energy independence, and will slow the country’s move toward a lower carbon future.

On the U.S. Senate Side, KIOGA met with Senate Republican Leader Mitch McConnell (R-KY), Senate Environment & Natural Resources (ENR) Committee Chair Joe Manchin (D-WV), Republican Ranking ENR Committee member John Barrasso (R-WY), and ENR Committee member Angus King (I-ME). We will also be meeting with the Republican Ranking Senate Finance Committee member Mike Crapo (R-ID).

In all the meetings, we urged NO votes on the reconciliation bill in general. Cross told the policymakers the $3.5 trillion reconciliation bill includes numerous items that would decimate American oil and natural gas producers. The reconciliation package would destroy jobs, weaken America’s geopolitical standing, and impose crushing new energy costs on Americans who can least afford to pay. The small businesses that make up the America’s independent oil and gas industry are under assault by Speaker Pelosi and the Progressives in the Democratic Caucus. From elimination of percentage depletion and intangible drilling costs (IDC) to implementation of a new “methane emissions fee,” everything is on the table as Speaker Pelosi looks for ways to hamper American oil and natural gas producers. These proposals will cost thousands of jobs across the country and harm not only oil and natural gas workers, but the communities that rely on the economic activity generated by this production.

Although the supporters of the bill claim these efforts are focused on environmental protection, this legislation has nothing to do with addressing climate change or protecting the environment. Cross urged all the policymakers to vote no on this ill-advised proposal.

We also urged the policymakers to keep a methane emission fee out of the reconciliation process and how a methane emission fee would be a wrong path to manage methane. KIOGA updated several of our white papers and reference material on oil and gas taxes, methane fees, and provided this information to all policymakers and staff. We also submitted a formal letter opposing a methane fee or tax as well as a formal letter urging the policymakers to vote NO on the reconciliation bill. If you would like to see a copy of any of the reference material and/or letters, please contact us at and we will send you a copy.

Next Generation Fuels Act

    Earlier this week, Representative Jake LaTurner (R-KS) asked for KIOGA input on the Next Generation Fuel Act –a bill led by Representative Cheri Bustos (D-IL). The bill would establish a high-octane, low-carbon fuel standard and would require auto manufacturers to build vehicles that support higher octane blends in future years. KIOGA President Edward Cross told LaTurner that, in general, we support policies that take a technology-neutral approach. In this case, transportation sector measures should take a holistic approach and address not only fuels, but also batteries, electric vehicles, and infrastructure systems.

KIOGA Reaching Out to Raise Energy Awareness

KIOGA will be engaging in several public information opportunities in the coming weeks. KIOGA President Edward Cross has been invited to speak at the Dole Institute of Politics on the negative impacts of the Green New Deal. In addition, Wichita State University Center for Economic Development and Business Research (CEDBR) invited Cross to speak about the State of the Oil & Gas Industry at two of their upcoming Kansas Economic Outlook Conferences. Cross will be speaking at Pittsburg State University on October 12th and at Salina on October 14th.