SENATE RESOLUTION NO. 15
(By Senators Humphreys, Ross and Helmick)
Urging the Congress of the United States to extend Section 29 of
the United States Internal Revenue Code, providing for tax
credits to independent businesses involved in the natural
gas and oil drilling industry in West Virginia.
Whereas, Oil and natural gas are produced in the state of
West Virginia in forty-nine of the state's fifty-five counties
with over 50,000 wells in production; and
Whereas, West Virginia enjoys the second largest reserve of
natural gas in the Appalachian basin; and
Whereas, Section 29 of the United States Internal Revenue
Code, providing a tax credit for the drilling of natural gas and
oil wells, was not extended for natural gas wells; and
Whereas, The failure to extend the tax credit for oil and
natural gas has caused a tremendous hardship on many independent
oil and gas drillers in the state of West Virginia and the
thousands of families directly and indirectly dependent on the
industry for their livelihoods; and
Whereas, The total number of new wells drilled has decreased
from 2,114 in 1982 to a projected number of 168 in 1993; and
Whereas, Over 23 million dollars per year in severance taxes
were paid to the state by the oil and gas industry and royaltypayments exceeded a sum of 597 million dollars in the past
decade; therefore, be it
Resolved by the Senate:
That the Senate of West Virginia urge the Congress of the
United States to reenact Section 29 of the Internal Revenue Code
to provide a tax credit to independent natural gas and gas
drillers; and, be it
Further Resolved, That the Clerk is hereby directed to
forward a copy of this resolution to the president of the United
States and to the members of Congress.