On 2 February 2018, Governor Bill Walker’s administration put forward a bill that would allow for a total of up to USD 1 billion in outstanding and pending tax credits to be paid out from the proceeds of a bond issue.
The pay-out is meant to be effected soon and at a total discount of up to 10% to avoid the state's ratcheting up additional costs. The bill is meant to be put to the vote soon, and the first payments could therefore be made before the year is out.
Deutsche Oel & Gas Group welcomes the bill, since it would endow all market participants with greater certainty in their planning. After state tax-credit repurchases had been limited to the legal minimum in 2016 and 2017, and the scheduling of outstanding payments had been fraught with uncertainty for a long time, companies like Deutsche Oel & Gas would now be able to claim their dues considerably sooner than expected. This would of course allow for higher investment levels within the state again, with the resultant positive impact on the local job market, and even more importantly, oil and natural gas production would see a sustained rise, thus ensuring supply to the entire region.