American Oil and Gas Reporter - November 2019 - 81

to adopt state plans," Winmill adds.
In granting the temporary injunction,
Winmill concludes that at trial, the plaintiffs
"likely will succeed in showing" that:
· The 2019 plan amendments contain
substantial reductions in sage grouse protections;
· The 2019 environmental impact statements fail to comply with the National
Environmental Policy Act's requirement
that BLM consider reasonable alternatives;
· The EISs do not contain sufficient
cumulative impact analyses as required
by NEPA;
· The EISs fail to take the required
"hard look" at environmental conse-

quences; and
· Supplemental draft EISs should have
been issued when BLM decided to eliminate
mandatory compensatory mitigation.
Legally Sound
BLM spokesman Nicholas Goodwin
defends the 2019 amendments in a statement following Winmill's ruling, saying,
"The common-sense amendments . . .
are legally sound and strike the appropriate
balance in effectively managing these
important public lands for multiple use."
Wyoming Governor Mark Gordon also
expresses disappointment in Winmill's
ruling. "Wyoming and the Sage Grouse

Implementation Team have worked diligently
for more than a decade to develop a balanced
approach to sage grouse management," he
says. "The 2019 plan amendments did not
substantively change greater sage grouse
protections. It better aligned the BLM with
what Wyoming has had in place.
"Lawsuits such as this only prevent
Wyoming from continuing the collaborative
work we have been doing already," Gordon
goes on. "They do not afford the bird any
more benefit and act only as a roadblock."
IPAA says BLM had not yet decided
whether to appeal Winmill's ruling to
the U.S. Court of Appeals for the 9th
Circuit.
❒

Ohio Production Pays Off For Schools
COLUMBUS, OH.-Ohio producers
have paid more than $141.9 million in
real estate taxes in eight counties, the
Ohio Oil & Gas Association and Energy
in Depth say in 2019 Update: Oil and
Gas Industry Property Tax Payments, the
new edition of The Utica Shale Local
Support Series.
It indicates the state has seen financial
benefits across numerous sectors of its
economy since the launch of its shale
plays, the groups observe.
According to the report, an update of
the 2017 edition, Utica Shale development
is responsible for an economic boost to
two regions of the state that need it the
most: eastern and southeastern Ohio. In
those eight counties, the report indicates,
from 2013 to 2017 oil production increased
by 356% and natural gas production
jumped 1,647%. It cites figures from
JobsOhio that say the oil and gas industry
has invested more than $74 billion in the
state since 2011.
The $141.9 million in real estate taxes
paid by oil and gas companies is triple
the $45.0 million the counties received
from 2010 to 2015, the groups note. 2019
Update projects industry activities will
contribute $200 million-$250 million in
real estate taxes between 2016 and 2026.
Ohio assesses oil and gas production as
real estate, similar to property taxes paid
on a home, the report describes. All the
revenue collected from this tax goes directly to support the areas where the oil
and gas is produced.
The report examines property tax data
from: Belmont, Carroll, Columbiana,
Guernsey, Harrison, Jefferson, Monroe
and Noble counties for fiscal years 201017, as well as the tax levy from oil and
gas production as reported to the Ohio
Department of Natural Resources from
2011 to 2015. "Other counties, such as

Knox, Mahoning, Portage, Tuscarawas
and Wayne, all have reported production
of horizontal drilling from 2011 to 2015,
however, the aforementioned eight counties
represent those in which the largest percentage of production has occurred during
2011-15," the OOGA and EID note.
2019 Update points out that of the
eight counties analyzed, none have a
sprawling metropolitan area, such as
Cleveland or Cincinnati, and most of the
regions have struggled for years to attract
new investment. "Oil and natural gas have
provided a lifeline to local economies in
these counties, helping not only to provide
jobs for families, but also a critical source
of new revenue for local governments
and schools that would not otherwise
have been available," the groups say.
Each county's auditor collects property
tax disbursements and distributes the revenues to local entities, with local public
school systems receiving 60%-70%, 2019
Update explains. Each county and local
municipality disburses this revenue in
different percentages, based on levies
passed by voters. After local schools receive at least half of the property taxes,
the county and townships receive monies.
The Oldest Tax
U.S. Energy Information Administration
statistics say Ohio is 10th in the country in
overall energy production, 12th in crude
oil production and fifth in gas production.
If Ohio and the rest of the surrounding Appalachian Basin were a separate nation, the
agency points out, it would be the world's
third-largest gas producing country.
The report notes the state's real estate
tax is Ohio's oldest tax, dating back to
1825. State regulations include provisions
that stipulate oil and gas wells, or the
value of any right to such minerals, are
assessed and taxed as real property.

Operators pay other taxes to local communities and state governments, OOGA
and EID point out, including road use maintenance agreements, sales taxes, commercial
activity taxes, severance taxes, income tax,
fuel use tax and property taxes paid on oil
and gas production. "While this real estate
property tax-or ad valorem tax-for wells
is not new, a significant increase in production
from shale has resulted in a dramatic increase
in property tax revenue historically paid
from conventional oil and natural gas production," the groups note.
Because the laterals used in horizontal
drilling may run through various tax districts, the state has changed its taxing
system. 2019 Update says the Ohio Department of Taxation, working with
ODNR, the Ohio County Auditors Association and other groups, has developed
a formula and computer program that
uses a sophisticated mapping system to
determine the length of horizontal well
pipe in each tax district. Those taxable
values than are returned to county auditors
for use in preparing their tax lists. County
treasurers are given the same information
to help prepare tax bills and collect payments.
"Without a doubt, every Ohio resident
is benefiting from oil and natural gas
production through lower gas prices,
home heating and home electricity costs,
as well as investment that has been spurred
all over the state, creating jobs and
boosting the local economy. Moreover,
the people who benefit the most are the
residents of the areas where mineral production is occurring," 2019 Update concludes. "This real estate property tax revenue is a lifeline for students, teachers,
local government employees, police and
firefighters. It is funding that goes directly
to the people who live and work in an
area where minerals are produced." ❒
NOVEMBER 2019 81

American Oil and Gas Reporter - November 2019

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