Denbury fights tax on carbon dioxide extraction

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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 a 6 percent severance tax on carbon dioxide, in line with other gases extracted in Mississippi. Entities which pumped the gas into the ground to force up oil from old Mississippi oil fields would be reimbursed for the tax.

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Taxes