Quote of the Day 3/27/2014

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The energy industry doesn’t pay a lot of income tax because of the intangible drilling cost deduction. And we don’t have an ad valorem tax on oil and gas wells, like Texas does. So what is going to be their contribution to the running of the state? Severance taxes, historically, has been how the oil and gas industry has helped contribute their part to the state. And as corporate citizens, they ought to be contributing their part.

-Don Millican, the Chief Financial Officer of Kaiser-Francis oil company. Millican also serves on the board of Oklahoma Policy Institute. He said Oklahoma’s generous tax break for horizontal drilling is not creating any extra economic activity, because companies drill where the hydrocarbons are. (Source: http://bit.ly/1o3OUZf)