Finance Committee Meeting Regarding Oil Issues, April 10, 1986

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lead_390_013_all_tr.txt

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Extent (Dublin Core)

4 Pages

File Name (Dublin Core)

lead_390_013_all

Title (Dublin Core)

Finance Committee Meeting Regarding Oil Issues, April 10, 1986

Date (Dublin Core)

1986-04-10

Date Created (Dublin Core)

1986-04-10

Congress (Dublin Core)

99th (1985-1987)

Topics (Dublin Core)

See all items with this valuePetroleum law and legislation

See all items with this valueExcess profits tax

Policy Area (Curation)

Economics and Public Finance

Creator (Dublin Core)

Dole, Robert J., 1923-2021

Boren, David, 1941-2025

Record Type (Dublin Core)

notes (documents)

Rights (Dublin Core)

http://rightsstatements.org/vocab/CNE/1.0/

Language (Dublin Core)

eng

Collection Finding Aid (Dublin Core)

https://dolearchivecollections.ku.edu/index.php?p=collections/findingaid&id=26&q=

Physical Location (Dublin Core)

Collection 007, Box 390, Folder 13

Institution (Dublin Core)

Robert J. Dole Institute of Politics, University of Kansas, Lawrence, KS

Archival Collection (Dublin Core)

Robert J. Dole Republican Leadership Collection, 1985-1996

Full Text (Extract Text)

5-230 10:00 4/10

Baucus
Wallop R
Long
Boren
Nickles R
Armstrong R
Pryor
Bentsen
Dole R
Kassebaum R

re : finance cmte oil issues
all attended

(crossed out) 451-0831
818 795-1107 Bilbury
Lisa Soder 101 N (illegible) rd
Alex 22314 (end crossed out)


(page 2)
BOB DOLE
KANSAS

United States Senate
OFFICE OF THE MAJORITY LEADER
WASHINGTON, DC 20510

April 10, 1986
MEMORANDUM
TO: SENATOR DOLE
FROM: RICH BELAS
SUBJECT: POSSIBLE OIL INDUSTRY AMENDMENTS

At your meeting at 10:00 a.m., Senator Boren will probably bring up the attached list of issues.
I have spoken at length with Bob Woody on behalf of Dick Smith. He has told me that their first priority would be to remove the 50 percent net income limitation and second priority would be to repeal the proven property transfer rule. They recognize that the latter would be more difficult to justify.
They, of course, would like the Windfall Profit tax to be repealed.
Repeal of the net income limitation should not have any significant revenue impact, given the current state of the energy sector. I have not yet been able to get an official estimate from Joint Tax.
According to Joint Tax staff, repeal of the Windfall Profit Tax would cost $7.4 billion over five years compared to the Packwood package, using the CBO assumptions they normally use. Using the current price of oil adjusted for inflation, the revenue impact would be negligible.

Att.


(page 3)
DAVID BOREN
OKLAHOMA

RUSSELL BUILDING
WASHINGTON, DC 20510

621 NORTH ROBINSON
OKLAHOMA CITY, OK 73102

440 SOUTH HOUSTON
TULSA, OK 74127

MUNICIPAL BUILDING
SEMINOLE, OK 74868

Joyce

MEMBER
COMMITTEE ON FINANCE
COMMITTEE ON AGRICULTURE, NUTRITION AND FORESTRY
COMMITTEE ON SMALL BUSINESS
SELECT COMMITTEE ON INTELLIGENCE

United States Senate
WASHINGTON, DC 20510

April 2, 1986

(handwritten) Betty Joyce ? (end handwritten)

The Honorable Robert Dole
United States Senate
Washington, D.C. 20510

Dear Bob:
The situation has become so critical because of the impact of the falling oil prices on striper productions that immediate action is needed to prevent the premature plugging of wells. I am hoping that the five of us on the Finance Committee (highlighted) (Dole, Long, Bentsen, Wallop and Boren) from oil producing states can get together Tuesday to consider what we might do. (end highlight) Attached is a list of several proposed options. I would greatly value your thinking about any or all of them.

(handwritten) NICKLES (end handwritten)

My secretary will be calling your secretary very shortly to see if we can make arrangements for a meeting on Tuesday. It might be advisable for each of us to include the tax legislative aides from the five offices.

Sincerely,
(signature)
David L. Boren
United States Senator

DLB/lr

4/7 Copy to Joyce
10:00 Thursday S-230
April 10th


(page 4)
PROPOSED OPTIONS
1. Provision of a tax credit for stripper production calculated as the difference between cost of production and market price.
2. Repeal of the proven property transfer rule.
3. Repeat of the 50% of net income limitation.
4. Extension of the depletion allowance for all stripper production regardless of who owns the property.
5. Restoration of the depletion allowance to 22.5% from the current 15%.
6. Repeal of the so-called windfall profits tax.
7. Reclassification of geological and geophysical costs and unrecoverable surface casing expenditures as intangible drilling costs.
8. Repeal of the fuel use act.
And any other ideas pertaining to the improvement of the Senate Finance Committee draft on tax reform as it relates to the oil and gas industry.

5-230 10:00 4/10

Baucus
Wallop R
Long
Boren
Nickles R
Armstrong R
Pryor
Bentsen
Dole R
Kassebaum R

re : finance cmte oil issues
all attended

(crossed out) 451-0831
818 795-1107 Bilbury
Lisa Soder 101 N (illegible) rd
Alex 22314 (end crossed out)


(page 2)
BOB DOLE
KANSAS

United States Senate
OFFICE OF THE MAJORITY LEADER
WASHINGTON, DC 20510

April 10, 1986
MEMORANDUM
TO: SENATOR DOLE
FROM: RICH BELAS
SUBJECT: POSSIBLE OIL INDUSTRY AMENDMENTS

At your meeting at 10:00 a.m., Senator Boren will probably bring up the attached list of issues.
I have spoken at length with Bob Woody on behalf of Dick Smith. He has told me that their first priority would be to remove the 50 percent net income limitation and second priority would be to repeal the proven property transfer rule. They recognize that the latter would be more difficult to justify.
They, of course, would like the Windfall Profit tax to be repealed.
Repeal of the net income limitation should not have any significant revenue impact, given the current state of the energy sector. I have not yet been able to get an official estimate from Joint Tax.
According to Joint Tax staff, repeal of the Windfall Profit Tax would cost $7.4 billion over five years compared to the Packwood package, using the CBO assumptions they normally use. Using the current price of oil adjusted for inflation, the revenue impact would be negligible.

Att.


(page 3)
DAVID BOREN
OKLAHOMA

RUSSELL BUILDING
WASHINGTON, DC 20510

621 NORTH ROBINSON
OKLAHOMA CITY, OK 73102

440 SOUTH HOUSTON
TULSA, OK 74127

MUNICIPAL BUILDING
SEMINOLE, OK 74868

Joyce

MEMBER
COMMITTEE ON FINANCE
COMMITTEE ON AGRICULTURE, NUTRITION AND FORESTRY
COMMITTEE ON SMALL BUSINESS
SELECT COMMITTEE ON INTELLIGENCE

United States Senate
WASHINGTON, DC 20510

April 2, 1986

(handwritten) Betty Joyce ? (end handwritten)

The Honorable Robert Dole
United States Senate
Washington, D.C. 20510

Dear Bob:
The situation has become so critical because of the impact of the falling oil prices on striper productions that immediate action is needed to prevent the premature plugging of wells. I am hoping that the five of us on the Finance Committee (highlighted) (Dole, Long, Bentsen, Wallop and Boren) from oil producing states can get together Tuesday to consider what we might do. (end highlight) Attached is a list of several proposed options. I would greatly value your thinking about any or all of them.

(handwritten) NICKLES (end handwritten)

My secretary will be calling your secretary very shortly to see if we can make arrangements for a meeting on Tuesday. It might be advisable for each of us to include the tax legislative aides from the five offices.

Sincerely,
(signature)
David L. Boren
United States Senator

DLB/lr

4/7 Copy to Joyce
10:00 Thursday S-230
April 10th


(page 4)
PROPOSED OPTIONS
1. Provision of a tax credit for stripper production calculated as the difference between cost of production and market price.
2. Repeal of the proven property transfer rule.
3. Repeat of the 50% of net income limitation.
4. Extension of the depletion allowance for all stripper production regardless of who owns the property.
5. Restoration of the depletion allowance to 22.5% from the current 15%.
6. Repeal of the so-called windfall profits tax.
7. Reclassification of geological and geophysical costs and unrecoverable surface casing expenditures as intangible drilling costs.
8. Repeal of the fuel use act.
And any other ideas pertaining to the improvement of the Senate Finance Committee draft on tax reform as it relates to the oil and gas industry.

5-230 10:00 4/10

Baucus
Wallop R
Long
Boren
Nickles R
Armstrong R
Pryor
Bentsen
Dole R
Kassebaum R

re : finance cmte oil issues
all attended

(crossed out) 451-0831
818 795-1107 Bilbury
Lisa Soder 101 N (illegible) rd
Alex 22314 (end crossed out)


(page 2)
BOB DOLE
KANSAS

United States Senate
OFFICE OF THE MAJORITY LEADER
WASHINGTON, DC 20510

April 10, 1986
MEMORANDUM
TO: SENATOR DOLE
FROM: RICH BELAS
SUBJECT: POSSIBLE OIL INDUSTRY AMENDMENTS

At your meeting at 10:00 a.m., Senator Boren will probably bring up the attached list of issues.
I have spoken at length with Bob Woody on behalf of Dick Smith. He has told me that their first priority would be to remove the 50 percent net income limitation and second priority would be to repeal the proven property transfer rule. They recognize that the latter would be more difficult to justify.
They, of course, would like the Windfall Profit tax to be repealed.
Repeal of the net income limitation should not have any significant revenue impact, given the current state of the energy sector. I have not yet been able to get an official estimate from Joint Tax.
According to Joint Tax staff, repeal of the Windfall Profit Tax would cost $7.4 billion over five years compared to the Packwood package, using the CBO assumptions they normally use. Using the current price of oil adjusted for inflation, the revenue impact would be negligible.

Att.


(page 3)
DAVID BOREN
OKLAHOMA

RUSSELL BUILDING
WASHINGTON, DC 20510

621 NORTH ROBINSON
OKLAHOMA CITY, OK 73102

440 SOUTH HOUSTON
TULSA, OK 74127

MUNICIPAL BUILDING
SEMINOLE, OK 74868

Joyce

MEMBER
COMMITTEE ON FINANCE
COMMITTEE ON AGRICULTURE, NUTRITION AND FORESTRY
COMMITTEE ON SMALL BUSINESS
SELECT COMMITTEE ON INTELLIGENCE

United States Senate
WASHINGTON, DC 20510

April 2, 1986

(handwritten) Betty Joyce ? (end handwritten)

The Honorable Robert Dole
United States Senate
Washington, D.C. 20510

Dear Bob:
The situation has become so critical because of the impact of the falling oil prices on striper productions that immediate action is needed to prevent the premature plugging of wells. I am hoping that the five of us on the Finance Committee (highlighted) (Dole, Long, Bentsen, Wallop and Boren) from oil producing states can get together Tuesday to consider what we might do. (end highlight) Attached is a list of several proposed options. I would greatly value your thinking about any or all of them.

(handwritten) NICKLES (end handwritten)

My secretary will be calling your secretary very shortly to see if we can make arrangements for a meeting on Tuesday. It might be advisable for each of us to include the tax legislative aides from the five offices.

Sincerely,
(signature)
David L. Boren
United States Senator

DLB/lr

4/7 Copy to Joyce
10:00 Thursday S-230
April 10th


(page 4)
PROPOSED OPTIONS
1. Provision of a tax credit for stripper production calculated as the difference between cost of production and market price.
2. Repeal of the proven property transfer rule.
3. Repeat of the 50% of net income limitation.
4. Extension of the depletion allowance for all stripper production regardless of who owns the property.
5. Restoration of the depletion allowance to 22.5% from the current 15%.
6. Repeal of the so-called windfall profits tax.
7. Reclassification of geological and geophysical costs and unrecoverable surface casing expenditures as intangible drilling costs.
8. Repeal of the fuel use act.
And any other ideas pertaining to the improvement of the Senate Finance Committee draft on tax reform as it relates to the oil and gas industry.

5-230 10:00 4/10

Baucus
Wallop R
Long
Boren
Nickles R
Armstrong R
Pryor
Bentsen
Dole R
Kassebaum R

re : finance cmte oil issues
all attended

(crossed out) 451-0831
818 795-1107 Bilbury
Lisa Soder 101 N (illegible) rd
Alex 22314 (end crossed out)


(page 2)
BOB DOLE
KANSAS

United States Senate
OFFICE OF THE MAJORITY LEADER
WASHINGTON, DC 20510

April 10, 1986
MEMORANDUM
TO: SENATOR DOLE
FROM: RICH BELAS
SUBJECT: POSSIBLE OIL INDUSTRY AMENDMENTS

At your meeting at 10:00 a.m., Senator Boren will probably bring up the attached list of issues.
I have spoken at length with Bob Woody on behalf of Dick Smith. He has told me that their first priority would be to remove the 50 percent net income limitation and second priority would be to repeal the proven property transfer rule. They recognize that the latter would be more difficult to justify.
They, of course, would like the Windfall Profit tax to be repealed.
Repeal of the net income limitation should not have any significant revenue impact, given the current state of the energy sector. I have not yet been able to get an official estimate from Joint Tax.
According to Joint Tax staff, repeal of the Windfall Profit Tax would cost $7.4 billion over five years compared to the Packwood package, using the CBO assumptions they normally use. Using the current price of oil adjusted for inflation, the revenue impact would be negligible.

Att.


(page 3)
DAVID BOREN
OKLAHOMA

RUSSELL BUILDING
WASHINGTON, DC 20510

621 NORTH ROBINSON
OKLAHOMA CITY, OK 73102

440 SOUTH HOUSTON
TULSA, OK 74127

MUNICIPAL BUILDING
SEMINOLE, OK 74868

Joyce

MEMBER
COMMITTEE ON FINANCE
COMMITTEE ON AGRICULTURE, NUTRITION AND FORESTRY
COMMITTEE ON SMALL BUSINESS
SELECT COMMITTEE ON INTELLIGENCE

United States Senate
WASHINGTON, DC 20510

April 2, 1986

(handwritten) Betty Joyce ? (end handwritten)

The Honorable Robert Dole
United States Senate
Washington, D.C. 20510

Dear Bob:
The situation has become so critical because of the impact of the falling oil prices on striper productions that immediate action is needed to prevent the premature plugging of wells. I am hoping that the five of us on the Finance Committee (highlighted) (Dole, Long, Bentsen, Wallop and Boren) from oil producing states can get together Tuesday to consider what we might do. (end highlight) Attached is a list of several proposed options. I would greatly value your thinking about any or all of them.

(handwritten) NICKLES (end handwritten)

My secretary will be calling your secretary very shortly to see if we can make arrangements for a meeting on Tuesday. It might be advisable for each of us to include the tax legislative aides from the five offices.

Sincerely,
(signature)
David L. Boren
United States Senator

DLB/lr

4/7 Copy to Joyce
10:00 Thursday S-230
April 10th


(page 4)
PROPOSED OPTIONS
1. Provision of a tax credit for stripper production calculated as the difference between cost of production and market price.
2. Repeal of the proven property transfer rule.
3. Repeat of the 50% of net income limitation.
4. Extension of the depletion allowance for all stripper production regardless of who owns the property.
5. Restoration of the depletion allowance to 22.5% from the current 15%.
6. Repeal of the so-called windfall profits tax.
7. Reclassification of geological and geophysical costs and unrecoverable surface casing expenditures as intangible drilling costs.
8. Repeal of the fuel use act.
And any other ideas pertaining to the improvement of the Senate Finance Committee draft on tax reform as it relates to the oil and gas industry.