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Gold/Mining/Energy : Big Dog's Boom Boom Room
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To: excardog who wrote (26467)10/18/2003 10:43:20 PM
From: Archie Meeties  Read Replies (2) of 206087
 
Here's some stuff I have from notes about the energy bill. All of this is dated, but some of it might come out in the final version.

Utes. No tax on the sale of power lines until 2008. (I guess this is an incentive to build power lines??)

Some breaks for those that convert dirty coal into clean coal.

E&P: Royalty relief in both deep and shallow waters.

Ability to write of the cost of exploration over 2 years instead of the life of the well (maybe this is what Palmers was stoked about?)

Marginal wells get a tax credit of as much as $3 when the price of oil goes under $18.

Extension of the $3 tax credit for coalbed methane. (nice idea that has run its course)

Pipelines: Depreciate over 7 years, not 15.

Refiners: A wierd provision to force refiners to add ethanol into gasoline. (Time to go long corn futures)

I don't have a way to measure the sentiment around this bill. My sense was that most thought that the noncontroversial parts would pass easily, and this includes royalty relief, some changes in accounting for wells. If the market goes hog wild over all the pork, it would be a sign that there was significant doubt about even the noncontrovesial stuff passing.

Overall, it seems the bill does more for gulf exploration than land exploration. Maybe the play would be on a gulf OS? In any case, I think the buying would be short term.

Josh.
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