Commission May Have to Seek Additional General Fund Money / after Seeing 35% Drop in Revenue

By Robinson, Robin | THE JOURNAL RECORD, September 23, 1986 | Go to article overview
Save to active project

Commission May Have to Seek Additional General Fund Money / after Seeing 35% Drop in Revenue


Robinson, Robin, THE JOURNAL RECORD


A 35 percent drop in the revenue from fuel taxes for the first half of 1986 will mean more of the Oklahoma Corporation C ommission's activities will be funded by the state's General Fund and less from the taxes set up to fund the commission, said commissioner James B. Townsend.

The gross wellhead value of liquid (oil) and natural gas sales during the first six months of 1986 declined by 35 percent, according to analysis performed by the Oklahoma Corporation Commission's statistical department.

The gross wellhead value was $3.04 billion for the first six months of 1986, compared to $4.67 billion for the same six-month period in 1985.

The loss in wellhead value is reflected in the drop in price and the drop in production.

The drop in wellhead value directly affects the gross production tax, petroleum excise tax and conservation funding by the same percent.

The petroleum excise tax had provided 60 to 65 percent of the commission's funding, Townsend said. ""If that revenue stream is down 50 percent, it will have a dramatic impact.''

""It could be felt as early as November or December, if the trend continues, and I don't see anything to stop it from continuing."

The areas that use the gross production tax are the oil and gas conservation division, the office of general counsel, the administration division, the office of administrative proceedings and the data processing division.

The oil and gas conservation division is funded totally from the petroleum excise tax.

The petroleum excise tax is allotted in two categories: the tax from natural gas and the tax from all other fuels. Of the petroleum excise tax from all fuels except for natural gas, 94.5 percent isallotted to the oil conservation fund, which is the account for the oil and gas conservation divison. The remaining 5.5 percent is alotted to the interstate oil compact fund.

The petroleum excise tax from natural gas allots 95.4 percent of its total to the oil conservation fund and the remaining 4.6 percent to the interstate oil compact fund.

Historically, the petroleum excise tax produced more revenue than was needed by the oil and gas division, Townsend said.

""The surplus was substantial in good times,'' he said.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Commission May Have to Seek Additional General Fund Money / after Seeing 35% Drop in Revenue
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?