Sunday, May 5, 2013

Time For A New Poll

Updates

May 6, 2013: Wyoming wind energy tax pulls in a paltry $1 million.  The Trib.com is reporting:
Wyoming's one-of-a-kind wind power production tax generated only a drop in the bucket's worth of revenue for the state and counties in 2012.
The $1-per-megawatt-hour tax, signed into law in 2010, raised about $1.6 million for six counties in the central and southeast part of the state in its first year of implementation. Converse County received about $600,000 of that total.
An additional $1 million went into state coffers.
State officials admitted that the tax revenue collected last year was paltry when compared to revenue derived from minerals and other taxes. But they expect the wind revenue stream to grow with the industry.
Original Post
I'm not sure this is really ready for prime time but I'm tired of seeing the same poll up there day after day so I'll do this even though I don't have enough background on the subject to know if it's even feasible (due to interstate commerce regulations) but ...

... before a new poll, the results of the current poll.

The current poll asked readers to suggest which operator would the first to have permits for 18 wells on one pad? The results:
  • XTO:  10%
  • QEP:  4%
  • Slawson:  4%
  • Hess: 16%
  • EOG: 11%
  • CLR: 55%
Now, for the question I'm not sure is ready for prime time, but as noted, I was getting tired of the current poll.

A reader suggested: the state of North Dakota should charge a Wind Energy Extraction Tax of .005 cents per kwh. One-half of one cent/kwh should be levied on all wind energy produced in North Dakota to be used out-of-state. The rationale: if the producer can generate a 2.2 cent per kwh federal tax credit, giving up less then 25% of that credit would not be a burden. (For the full back story, see the comment at this post.) NIMBYs need to pay their fair share.

The poll:
Should North Dakota charge a wind energy production tax?

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Comments from readers:

In support of a wind tax per kwh on EXPORTED wind energy. There is a severance tax on North Dakota coal. If you burn less lignite to make elec going to MN or SD, the local county/school districts have less tax, and then you have less workers. Those mine jobs are goo paying job.

2 comments:

  1. Remember Bruce, there can never be Enough taxes.

    So yes ND should levy a tax on their wind being used. In fact MN, as a down wind state, should also tax ND wind producers for diminishing their wind potential.

    Just think, with the extra tax revenue the states can offer more tax incentives for new wind producers. New producers then in turn generates more tax revenue for additional incentives. Think of it as a perpetual motion machine. Only a green one.

    ReplyDelete
    Replies
    1. Well, we'll see how the poll turns out. You may be in the majority.

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