Article: SPECULATION ON EFFECTS OF ENERGY SECURITY ACT ASTOUNDING

Speculation about the effects of the Domestic Energy Security Act of 1989, co-sponsored by U.S. Sens. David Boren and Don Nickles, both of Oklahoma, is astounding.

Highlights of the bill, which has bipartisan support - Boren is Democrat and Nickles is Republican - along with industry consensus, include:

- A 20 percent tax credit for exploration and development expenses.

- A 20 percent tax credit on the costs of operating marginal wells - stripper wells, heavy oil wells and oil recovered by tertiary methods.

- Elimination of intangible drilling costs and excess depletion as preference items.

- Immediate expensing of geological, geophysical and unrecoverable surface ...

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