Denbury fights tax on carbon dioxide extraction - MSNewsNow.com - Jackson, MS

Denbury fights tax on carbon dioxide extraction

By JEFF AMY
Associated Press

JACKSON, Miss. (AP) - Denbury Resources is fighting an attempt to tax carbon dioxide drilled from underground deposits in Mississippi, another in a series of efforts to penalize the oil producer for shipping carbon dioxide out of state instead of using it in Mississippi.

A House Ways and Means subcommittee held a hearing Monday on House Bill 1554, which would impose the normal 6 percent severance tax on carbon dioxide, which is now exempt. Entities which used the gas to force up oil from old Mississippi oil field would be reimbursed for the tax.

The bill's outlook is unclear, with it still in committee two days before the House must act on it to keep it alive.

Earlier bills to force Denbury to allow others to ship carbon dioxide through an in-state pipeline died.

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