RIFLE, Colo.—Royalty owners in Colorado and other supporters of domestic oil and gas production are opposing President Barack Obama’s recent proposal to revoke tax breaks for the industry.
The Daily Sentinel reported Monday that Neil Ray of the Rockies chapter of the National Association of Royalty Owners said the proposal would diminish royalties for mineral owners and cut production.
The president’s proposal would repeal writing off expenses for intangible drilling costs and eliminate tax credits for marginally producing wells. It also would exclude the industry from a domestic manufacturing tax deduction.
The administration said repealing the tax breaks would save billions of dollars over the next decade.
The American Petroleum Institute, a trade group, has said the tax increases would actually cost the government in the long term.
———
Information from: The Daily Sentinel,
