Abby L. Harvey
GHG Monitor
4/18/2014
Michigan companies conducting enhanced oil recovery will benefit from a lower severance rate under House Bill 4885, signed by Lt. Governor Brian Calley April 1 at Western Michigan University’s Michigan Geological Repository for Research and Education. Under the bill, sponsored by state Rep. Aric Nesbitt (R-Lawton) EOR projects will be taxed at a 4 percent severance rate, significantly lower than the 6.6 percent for oil and 5 percent for natural gas set by Michigan’s Severance Tax Act. “We have a great opportunity to become more competitive with other states by using this innovative method of enhanced recovery to help encourage the development of more Michigan and American energy,” Nesbitt said in a release. “The bills signed into law today will allow our state to take its place at the forefront of these advancing fields of energy production.” Calley also signed three bills providing for the exercise of eminent domain when laying CCS-EOR transport pipeline.
