Legislative Commmittee Rejects Tax on Natural Gas Flaring
CHEYENNE, Wyo. (AP) — The Legislature’s Joint Revenue Interim Committee has rejected a proposal that would have imposed taxes on flared natural gas in Wyoming.
The proposal failed on an 8-2 vote Tuesday in Cheyenne after committee members concluded that the revenue raised from the tax wasn’t worth the lawsuits that might challenge it.
Flaring is the burning of natural gas produced at the well into the atmosphere without collecting it. Producers flare the gas because they have no means to transport and process the gas or the gas isn’t worth collecting.
Its detractors say the practice wastes an energy resource.
Bruce Hinchey of the Wyoming Petroleum Association says taxing the flared gas puts a value on a product that is not processed and sold and would lead to years of litigation.