Though it faces lawsuits from parishes seeking billions of dollars in compensation for coastal erosion and continuing economic fallout from the coronavirus pandemic, Louisiana’s energy industry has taken some solace from the Nov. 3 election results.
The Louisiana Oil and Gas Association expressed relief that voters statewide approved Constitutional Amendment 2, a measure that LOGA sees as bringing fairness to the process of determining the value of wells for tax purposes. The measure, which 58.3 percent of Louisiana voters favored, adds a third way of valuing wells – their ability to produce revenues – on top of the currently available methods. Those methods involve calculating replacement costs and market value.
Amendment 2 was supported by LOGA, the Louisiana Mid-Continent Oil and Gas Association, and the Louisiana Assessors’ Association as a means of increasing confidence in the assessment process and avoiding excessive, onerous civil litigation.
“The measure will make assessments on oil and gas wells fair, more accurate and more predictable, so that’s a win for everybody, and we’re excited about the future,” LOGA’s spokeswoman, Kati Hyer, told the Louisiana Record in an email.
LOGA officials have said that ensuring property tax assessments are consistent and accurate would help to ensure the financial health of the industry in Louisiana. The ballot measure passed the legislature with strong bipartisan support.
In another closely watched contest, the association’s political action committee endorsed incumbent District Attorney Bo Duhé in the race for district attorney in the 16th Judicial District Court, which covers St. Martin, Iberia and St. Mary parishes. Duhé easily won that race.
“He is a much-lauded servant of the community, and ... we look forward to his continued fair and impartial reading of the law,” Mike Moncla, executive director of the committee, said in a prepared statement.
LOGA, however, views the likely results of the presidential vote less favorably. The results of the presidential race shows Democrat Joe Biden on a path to winning the Electoral College and making President Trump a one-term president – even as Trump captured Louisiana’s eight electoral votes.
In a pre-election post on LOGA’s website, Moncla said the two candidates have wildly diverging views of the oil industry.
“One has called for our country’s energy consumption needs to be filled by American producers, and for those same American producers to be the source of energy for the entire globe,” Moncla said in a reference to Trump’s position, “and one has called for the ‘transitioning out’ of our industry.”