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To: SoJoCo
But I'd be willing to bet that the average oil company didn't pay 12.5% in federal taxes.

A better comparison is not taxes but Federal Royalty rates. The federal royalty rate for the infamous BP Macondo oil spill lease in the Gulf of Mexico was 18.75 percent. Many landowners are getting 20 percent or higher royalties for their Barnett Shale production. Fort Worth City Council approved a royalty rate of 28 percent for natural gas drilling rights under Meacham Airport. Some nations require a 51 percent or higher royalty from foreign companies drilling and producing within their borders.

http://wellservicingmagazine.com/royalty-rates-around-oilpatch

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The Interior Department is also considering, through a separate effort, an increase to onshore production royalty rates, now at 12.5%. The royalty rate for offshore production is 18.75%

http://www.rigzone.com/news/article.asp?a_id=107877

41 posted on 09/21/2011 12:18:44 PM PDT by thackney (life is fragile, handle with prayer)
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To: thackney
A better comparison is not taxes but Federal Royalty rates. The federal royalty rate for the infamous BP Macondo oil spill lease in the Gulf of Mexico was 18.75 percent.

But since that is a royalty and not a tax then I assume you don't have a problem with it?

44 posted on 09/21/2011 2:45:24 PM PDT by SoJoCo
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