Advocating for the Oil & Gas Industry One Bill at a Time
The Louisiana Oil and Gas Association (LOGA) represents the oil and gas industry in the state of Louisiana across the areas of exploration, production, and oilfield services. WIth a primary goal to enhance the industry, LOGA assists members through a variety of services like advocating to change burdensome regulations, educating the public and government about the importance of the industry, and working to lessen tax increases.
A major challenge that many operators and service companies in Louisiana face is the unfair tax system. For decades, people have worked to make the tax assessment for the industry more fair and much more predictable. Thanks to Daron Fredrickson, Partner and EVP of Merit Advisors and LOGA Tax Committee Chairman, along with his team at Merit and many stakeholders and advocates in the industry, a new bill was successfully passed in the legislature—unanimously—that would serve as a solution to this great challenge.
Daron and the team at LOGA have worked on multiple legal filings, dozens of presentations to the Louisiana Tax Commission, filed appeals, and held many stakeholder meetings. In the fall of 2016, the Louisiana Tax Commission strongly encouraged the industry and assessors to work together to resolve the broken tax system. After years of uncertainty and uncomfortable meetings the two parties joined forces to determine a new methodology to approach the tax challenge, and in November 2018, Daron and the LOGA Tax Committee proposed the idea of a Constitutional Amendment. This would allow Louisiana wells to be taxed on a discounted cash flow appraisal and changing in conjunction with price, production and current values.
Bill HB 360 will be on the ballots for public vote this November. Louisiana residents have an opportunity to make Ad Valorem tax more fair, by allowing the presence or production of oil and gas to be included in the method that determines fair market value of oil and gas wells for taxation. A change like this would be monumental for the industry and the local parishes alike!
Advocating to change legislation is just one of the many ways Merit Advisors goes above and beyond for their clients in the oil and gas industry. Merit Advisors is a team of trusted tax experts that craft holistic solutions to improve cash flow and add profit back to your bottom line.
“We have worked with our clients and found ethical, legitimate ways to get cash back in their hands,” said Daron Fredrickson. “The key is a good team and old-fashioned hard work.”
While the market is seeing commodity prices bounce back, Merit Advisors understands that many difficult decisions had to be made, and are still being made, to protect your workforce and the stability of your business. And they’re here to help!
Reach out to Daron at email@example.com to discuss how Merit can help improve your cash flow, today!