(WASHINGTON, DC) - Representative Dennis Moore (Third District-KS) reintroduced bipartisan legislation Tuesday targeted to increase domestic natural gas production from marginal and hard-to-reach sources. The bill, H.R. 2899, would help decrease U.S. dependence on foreign oil, result in a cleaner environment and reduce energy costs for consumers.

“This bill is the right thing to do for Kansas consumers and our small producers,” said Moore. “The uncertainties in the Middle East and the concerns of consumers underscore the importance of taking immediate steps to expand our domestic energy supply. This legislation is a potent tool for stabilizing natural gas supplies and prices.”

The Moore bill would extend a tax credit in section 29 of the tax code that provides an added incentive for producers of unconventional fuels to continue production. These fuels -- such as coalbed methane, tight sands gas and gas produced from Devonian Shale -- would not be economically recoverable for producers in most areas of the nation without this incentive.

H.R. 2899 would:

• Extend the credit to 2009;
• Extend the credit for certain landfill gas;
• Cap the output of eligible wells to 200,000 cubic feet of natural gas per day.

History demonstrates that section 29 can be enormously successful in expanding U.S. production of natural gas. According to a study by the Gas Technology Institute, passage of section 29 led to a tripling in the production of “non-conventional” gas. That same study suggests that an extension of the credit could again be effective in expanding gas supply, moderating prices, and ultimately saving consumers billions of dollars.

“This is an idea that will allow domestic natural gas production to increase and stabilize, which will lead to lower prices for consumers.” Moore said. “It is an idea proven to work, and it needs to be the law.”

Original cosponsors of the bill include Representative Spencer Bachus (R-AL), Representative Jim Matheson (D-UT) and Representative John Shimkus (R-IL).

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