Honorable Senators DAVID BOREN and ROBERT DOLE: I am an Okla. land and mineral royalty owner. I feel that the windfall profit tax is unjust, illegal and confiscatory for the following reasons: No. 1. We are forced by drilling and pooling laws to liquidate our assets without any control whatever, because Okla. law to cover the above is administered by the corporation commission which is controlled by the oil interests. No. 2. We are forced by their rulings to let the oil companies move onto our property to drill and produce hydrocarbons at the oil companies will. No. 3. As small land and royalty owners we have no duc process of law because these laws are written so we can't even bargain for the highest offer. They do not give us the same opportunity that is granted the Indians, School, land department, and Federal Govt. No. 4. We have nothing to say about who they sell to or how much is produced. The oil companies can produce in large quantities and deplete the well and pass their tax on to the consumer and also take tax deductions for other ventures. Ours is a one time sale. When it is depleted we are out of the oil business. There are many other reasons that could be listed but time will not permit. Sincerely, L. H. HEILINE. STATEMENT OF PAULINE HARBERT HOW I GOT HERE, AND WHY I RESENT BEING THE VICTIM OF THE SO CALLED Thanks, to Jimmy Carter's maneuvering, I feel like a puppet on his string. I feel like I'm being manipulated back to the poverty I knew-and struggled with, as a child. My Dad used a mule with a chain to arrange rocks for "jumping stones," They weren't close enough together to be called "stepping stones" We crossed the creek on them, when the weather was nice, on our three mile hike to school, over a dirt road. When it rained the creek got over the stones, the road was muddy-and Daddy would let us ride the mule to school. An example of the mules intelligence was provided one day, as she cautiously put one foot before the other, carrying us down a muddy hill-my Sister, Brother and I were kicking her in the ribs in an effort to get her to go faster. In exasperation, she lost her patience with us. She ducked her head and dumped us off in the mud. She made her way home without us. When Daddy saw the riderless mule by the yard fence, he rode her back across the creek to give us a ride-one at a time. Our feet got clean-shoes and all, as they dangled in the water. The rest of us got dunked in a "wash tub"-chattering teeth and all, when we got home. Life on a farm in Oklahoma for a family of ten, wasn't all fun and games. But we survived better than a lot of people during the 20's and 30's-We didn't "go hungry"- and we didn't have time to get into trouble. Our day started at 4.30 a.m. By the time we fed pigs, got the mules ready for the field and milched as many as six cows, Mother had a breakfast of fluffy biscuits, ham or sausage, scrambled eggs and gravy ready for us. Her theory was "If you eat a better breakfast-you'll do a better job." Her contention must have some merit, now her eight children are in their twlight years, and we are all still healthy enough to do a day's work. Mother was of Dutch and German descent. She was a great cook, innovative and resourceful. We knew it was Spring-when the Poke Salad hit the table-Prepared in a 1⁄2 dozen different ways. When we killed hogs in the fall, along with all the preservation of the meat, we made a year's supply of "lye" soap. Mother never believed that being "poor" was an excuse for being "dirty." The dirty people who whine poverty now-don't really know what being poor is really like. Our clothes got a lye soap scrubbing-on a "rub-board." They were hung on the yard fence to dry. We got our scrubbing in the same tubs, with the same soap after they were refilled from the creek, and heated on the wood stove. During the school part of the year, cutting wood for the heater, as well as the cook stove was an evening chore, along with feeding the chickens, gathering the eggs, feeding the pigs, milching the cows-plus un-harnessing the mules and feeding them. After feeding ourselves, we would be ready for bed at 9 o'clock. Friday night was my favorite supper-milk and mush! Our Mother never set a table with an apology. She could serve pinto beans, cornbread and a glass of milk-with gusto. Our Dad didn't tolerate anyone sitting at the table to say "I don't like that" He didn't ask, He would tell us to leave the table, with the remark-"You can come back next meal-so you can find out how good it is." I had a cotton sack hung on my back when I was eight years old. The most I ever picked in one day was 143 pounds, when I was 11. When we got our cotton picked, we could pick the neighbors for our money to buy our school clothes. Mother would make our two dresses, two slips, and two pair of black sateen bloomers, plus a coat-on a treadle sewing machine. We got one pair of shoes a year. Our rib socks were long enough to come above our knees-so they could keep our "long-handles" from rolling up. Did you ever go to a school where all the kids smelled like either-new overalls or black sateen bloomers? You missed an experience. Our $2.98 shoes from J. C. Penny, were better made than the ones we pay $40.00 for now. We bought sugar in 100 lb. sacks. Mother made our "work" dresses out of them. One of mine had a big holly wreath on my back. Across my rear was printed "100 lbs. of pure can sugar" I took such a ribbing-Dady bought a package of navy blue dye, so Mother could camofluage the lettering. My Parents were a proud people. They walked tall. They had a fear of God and a respect for themselves. They asked for nothing they didn't earn. They worked hard. They taught their children "If you don't make it today-you get up a little earlier tomorrow and try a little harder." They never suggested by example or implication that if we sat on our rear long enough-the "government" would provide by using our working neighbors hard-earned money. The "Government" does confiscate for that purpose. Do you suppose if we printed on all "government" Handout checks “You did not earn this money-it comes to you through the benevolence of your working neighbor."-it might influence some of the ones who are able to get a job? I'd like to see it tried. Yes, Mr. Carter I am disillusioned with you. After working 54 years, chopping cotton and picking it, hoeing corn and gathering it, feeding animals, shocking oats, gathering cane to make molasses, a waitress, a beauty operator, service station attendant, Western Union operator, a motel manager for 18 years, plus I followed a Sailor from coast to coast, including Hawaii and Alaska, while I was rearing our four children. (His battle station-was Captain's talker on the bridge of the USS Yorktown, during the battle of Midway-where the Mighty Lady slipped beneath the waves.) I'm not complaining about my life—its been Happy, interesting and productive. I am complaining about what you are doing to it. With the help of people like Ralph Nadar, George McGovern, Javits, Ted Kennedy, and Ed Muskie-plus others like them, you are turning my life-and a few million other people'sinto a shamble. I looked forward to relaxing in my old age-back on a farm, watching my Grandchildren grow. You've got inflation so high it looks like I'll either be back on a mule for transportation, or be your ward in one of the "government" institutions. What a prospect. The "wind" didn't drop any "profit" on me-for you and a bunch of ignorant leeches in Washington to confiscate-in the name of taxes. But then that's what taxes are-confiscation of private property. I paid $50,000 for my interest in the oil business. I didn't enjoy any luxuries while I was paying it either, and I worked long hours, so there was a sacrifice for the compensation. The "government" taxed my earnings while I was buying-No one from the IRS suggested, that since I was planning for my retirement that I should be allowed to keep some of the taxes. Since the "government" has nothing invested in my investment, I don't feel that you should practice "legal robbery"-to take it from me. I don't mind contributing to the effort of trying to satisfy the need for the needy-but I'm fed up to my eyeballs with trying to satisfy the greed of the greedy. I'll resent giving up the luxury of my comfortable car. I'm too old to walk far, and I don t think I could make it to get on a mule again. I'll resent giving up the comfort of my home-even though it is only four rooms-plus baths. Is your objective the destruction of what has always been considered the land of opportunity??? If so, your children and Grandchildren will be the victimsthe same as mine. Does that idea appeal to you??? Where is the justice? Hon. DAVID L. BOREN, 440 Russell Office Building, Washington, D.C. TULSA, OKLA., May 22, 1980. DEAR SIR: Please consider my protest of the excessive taxation brought about by extending the "Windfall Profit" Tax to virtually my sole source of incomemy royalty share of oil production. It is already subject to State Production Tax, Ad Valorem Tax and Federal Income Tax. This is from land in Ector County, Texas that has been producing since 1936 and, like me, (I am 65 years old Senior Citizen) is nearing depletion. When it is depleted, probably prematurely as the result of excessive taxation, I will not be like the big production companies who can move on to newer finds-my oil income is simply finished. Because of the price controls in effect for the past several years, I have consistently fallen behind other's whose income has been consistently increased by inflation and normal growth. Most of my income is still derived from $6.00 a barrel oil while prices of everything I buy has been and is continuing to shoot upward. Without a meaningful price increase in this income, I have no other way to possible keep up with inflation. I have been unfairly exploited for too long. There is no way a thoughtful, reasoning legislature can compare my situation in the same light as that of a major, integrated oil company, or of even any oil producer for that matter. Your proposed exemption of ten barrels per day of an individual's royalty oil from the Windfall Tax is, as evidenced by the above, of utmost importance to me. Please pursue that end with every effort at your disposal. You have demonstrated understanding of the facts of this whole situation and, as one of your constituency, you have my respect and support. I am proud to have you represent us. Sincerely yours, ROZELLA H. BYARS. DALLAS, TEX., May 21, 1980. SENATORS DAVID BOREN OF OKLAHOMA AND ROBERT DOLE OF KANSAS: It is my desire to give the following statement to the Senate Committee regarding the burden of the Windfall Profit Tax to the small Royalty Owners across the nation. Please be reminded that small royalty owners are those who own mineral rights which have been leased to producer-operators. The royalty owner retains oneeighth interest in production at the most and may receive royalty, payments on one well or more. Some royalty owners who have heired their interest may have a decimal interest so small you can not see the number for the ZEROS: On the otherhand, operators have fields, of which they have seven-eighths interest, for which they receive royalty payments. Simple mathematics tell you that the more you have, the more you receive. I am familiar with small royalty owners who receive royalty payments in these denominations: $40.00, 300.00, 500.00, 1,000.00 and upward to $3,000.00. In each case, after the windfall profit tax and sales tax was deducted, they net approximately fifty percent of this gross, depending on the tier which their production is from. Many of these people are on fixed income. One is a divorcee, supporting four children who receives approximately $30.00 after tax. And they call that "big oil": While it is impossible for me to know the circumstance of every individual, the information received from tax consultants state that some wells can be taxed up to ninety percent of the net profit. With only 10% left, to sustain oneself would obviously leave that royalty owner standing outside the Salvation Army. The royalty owner is in the position of which he has no control. The operator determines the price which the oil will be sold. The operator determines the production within allowables and capabilities. The royalty owner is at the mercy of the Operator, Railroad Commission the Federal Government-but in the case of the Windfall Profit Tax, found no one had mercy on him: Royalty Owners are facing Federal Income Taxes, Personal Property Taxes, State Sales Taxes and infamous insults created by those in Congress who imposed the Windfall Profit Tax with snide remarks declaring "Big Oil" profits are "obscene", etc. Because of the Windfall Profit Tax, increased taxes will be assessed, while the Federal Government has confiscated a marginal percentage of the profit which they so graciously permitted to occur with deregulation. Royalty Owners are faced with a straight tax rate, for most cases, there is relatively any deduction. The only specific ones for small Royalty Owners is (1) State Sales Tax, (2) Depletion, (3) Windfall Profit Tax, (4) Solar Energy, and (5) Transportation. In the case of the last two, few could involve themselves in either with what is left for investment. These deductions as do all, cost 100 percent. From certain publications which I have read, the royalty owners representation ceased in both Houses when it was determined certain areas would be penalized, or lose some of their credits or deductions if exemptions were given in favor of the royalty owners. Therefore, "small royalty owners were left to pay through the nose." By letter, the Internal Revenue Service informs me royalty owners are producers and in fact are obligated to the Windfall Profit Tax the same as Operators. Royalty Owners should receive equalized deductions; however, they do not have operating expenses and could not ask for the exact deduction. To equalize, additional exemptions could result through this proposal by Senators Boren and Dole, allowing a 10 brl. per day exemption from the Windfall Profit Tax on all taxable sales. This 10 brl. per day would have little effect on the small royalty owner who receives $40.00 gross per month; however, it can be recognized that royalty owner is receiving royalty for approximately one barrell of oil per month- at $40.00 per brl. One can hardly call that "obscene." But, as it now stands, the royalty owner must be taxed at one of the tax rates of 30-60-70 percent. Attached are the signatures of some Royalty Owners whom I have been able to contact on this short notice and have expressed a desire to be represented at this hearing through my testimony. It is our sincere desire that those representing small royalty owners will be able to convince the Congress that the Windfall Profit Tax places a dispicable burden or injustice on many American citizens, who happen to be fortunate in possessing a small interest in what once was the World's most prized and glamorous resource-Oil. It has fed many families, made them self-sustaining, and boosted the economy. In a time when inflation has reached an all time high, when interest rates and credit are prohibited and recession knocks at our door-the Federal Government sees fit to take from those who have some purchasing power, who could stimulate the economy-and distribute in grants and speculations which may become a total waste. This tax was created supposedly to curb inflation. However, when a goal of 227 billion dollars over a period of ten years is speculated at $40.00 per brl. and upward, there cannot possibly be any hope of any deflation before 1993. JOHN R. W. ALEXANDER. Attachments. MAY 23, 1980. This is to authorize J. R. Alexander to testify in my behalf at a hearing in Oklahoma City, Oklahoma on May 23, 1980, conducted by Senators David L. Boren and Robert Dole, who are seeking support of their bill to exempt small royalty owners from the Windfall Profit Tax. ANNIE MAE PICKERD. MAY 23, 1980. This is to authorize J. R. Alexander to testify in my behalf at a hearing in Oklahoma City, Oklahoma on May 23, 1980, conducted by Senators David L. Boren and Robert Dole, who are seeking support of their bill to exempt small royalty owners from the Windfall Profit Tax. IMOGENE M. GLENN. ARNOLD GLENN. MAY 23, 1980. This is to authorize J. R. Alexander to testify in my behalf at a hearing in Oklahoma City, Oklahoma on May 23, 1980, conducted by Senators David L. Boren and Robert Dole, who are seeking support of their bill to exempt small royalty owners from the Windfall Profit Tax. MRS. G. W. HEARD. MAY 23, 1980. This is to authorize J. R. Alexander to testify in my behalf at a hearing in Oklahoma City, Oklahoma on May 23, 1980, conducted by Senators David L. Boren and Robert Dole, who are seeking support of their bill to exempt small royalty owners from the Windfall Profit Tax. W. V. ROGERS. MAY 23, 1980. This is to authorize J. R. Alexander to testify in my behalf at a hearing in Oklahoma City, Oklahoma on May 23, 1980, conducted by Senators David L. Boren and Robert Dole, who are seeking support of their bill to exempt small royalty owners from the Windfall Profit Tax. G. W. TAYLOR, Jr. MAY 23, 1980. This is to authorize J. R. Alexander to testify in my behalf at a hearing in Oklahoma City, Oklahoma on May 23, 1980, conducted by Senators David L. Boren and Robert Dole, who are seeking support of their bill to exempt small royalty owners from the Windfall Profit Tax. GEORGE MORRIS. MAY 23, 1980. This is to authorize J. R. Alexander to testify in my behalf at a hearing in Oklahoma City, Oklahoma on May 23, 1980, conducted by Senators David L. Boren and Robert Dole, who are seeking support of their bill to exempt small royalty owners from the Windfall Profit Tax. L. C. MORGAN. Mrs. RUTH MORGAN. NELSON'S CORNER DRUG, Sulphur Springs, Tex., May 12, 1980. Mr. JOHN ALEXANDER, 2922 Royal Street, Oklahoma City, Okla. DEAR MR. ALEXANDER: You have the authorization to represent me in litigation concerning the heavy taxation of individuals in the windfall profits tax surcharge on oil royalties. Yours truly, |