Gas Drilling Is Tax Bonanza

Natural gas drilling in the Haynesville Shale formation in northwest Louisiana in 2009 increased state and local tax collections by more than $912 million, according to a new study financed by the Louisiana Oil and Gas Association.

The total includes direct taxes paid by the seven companies drilling in the area and indirect taxes generated by the increased business expenditures, royalties, and lease payments.

The study, prepared by Loren C. Scott & Associates, said the gas-drilling efforts generated $5.7 billion in new household earnings in Louisiana.

Direct taxes paid by those firms and activities in the shale formation indirectly generated state taxes of at least $573.5 million in 2009, according to the study.

Production activity from 2010 to 2014 is expected to generate $844 million in direct local tax revenue and $195 million in state severance taxes, the report said.

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