February

3, 2016 The Honorable Kevin Brady The Honorable Sander Levin U.S. House Committee
on Ways and Means Washington,

DC 20515 Dear Chairman Brady and Ranking Member Levin: On behalf of the undersigned member companies and organizations,

we request that Congress include

a permanent extension
of the Section 45Q Tax Credit for Carbon Dioxide Sequestration

in a technical corrections
act or other appropriate legislation. Section 45Q provides

a per ton tax credit for the storage of carbon dioxide (C02) through the use of enhanced
oil recovery (EOR) and is the most important benefit

in the tax code for incentivizing carbon capture utilization and storage (CCUS) at power plants and industrial facilities. As you know, the Omnibus Appropriations
Act of 2016 provided
an extension
of expiring tax benefits for the wind and solar industries. Inadvertently, some other energy credits, such as geothermal and fuel cell technologies, were not provided with
a similar extension and are scheduled for expiration

in the near future. Similarly, Section 450, will expire the year in which the currently authorized

75 million tons of C02 are stored, and roughly half those credits had already been claimed
as of 2014. Due to long lead times for construction

of such projects, the Section 45Q credit has, for practical purposes, already expired because the lack of financial certainty regarding future availability

of credits deters private investment

in new commercial C02 capture projects. Capturing and utilizing power plant and industrial C02 through EOR yields additional American
oil from existing wells that would otherwise not be accessed, thereby expanding domestic reserves and reducing imports. The U.S. independent

oil and gas industry

is the world leader

in C02-EOR and could produce billions of barrels of additional American
oil from existing fields, while safely and permanently storing billions of tons of C02. Realizing our full oil production and carbon storage potential will require that more C02 becomes available for the industry
to purchase and put to productive use. Fortunately, four decades
of commercial experience show that many industries-coal gasification, natural gas processing, chemicals, fertilizer, refining, ethanol and others-can become valued partners

in supplying that additional C02. CCUS also represents

an essential component

of our nation's strategy for achieving greenhouse
gas emissions reductions. Without widespread deployment

of carbon capture technologies,
we will simply fail to meet global midcentury goals for mitigating carbon emissions from electric power generation and a wide range of industrial activities. Congressman Mike Conaway

is preparing
to introduce legislation

to provide

a sensible solution for ensuring the financial certainty and effectiveness

of Section 45Q in driving private sector innovation and investment

in commercial deployment

of carbon capture projects. His proposal would provide for a necessary per ton increase

in the value of the tax credit and make

it permanent. Congressman Conaway's forthcoming legislation would achieve

a genuine win-win for our nation's economy and environment,

as evidenced

by the remarkable breadth of our coalition, which

is virtually unprecedented

in our politically polarized national energy policy arena. Therefore,
we respectfully urge your inclusion
of this measure

in a technical corrections
act or other legislative vehicle suitable for addressing energy tax provisions. Sincerely,OccidentalPetroleumCorporationShannonAngielskiExecutiveDirectorCoalUtilizationResearchCouncilMichaelFlanniganSeniorVicePresident,GlobalGovernmentAffairsPeabodyEnergy(for)DavidGoldstonDirector,GovernmentAffairsNaturalResourcesDefenseCouncilSashaMacklerVicePresident,SummitCarbonCaptureSummitPowerGroup,LLCBradMarkellExecutiveDirectorAFL-CIOIndustrialUnionCouncilRichardReaveyVicePresidentPublicAffairsCloudPeakEnergyBobPerciasepePresidentCenterforClimateandEnergySolutionsNationalEnhancedOilRecoveryInitiativeBradCrabtreeVicePresidentforFossilEnergyGreatPlainsInstituteNationalEnhancedOilRecoveryInitiativeDeckSloneSeniorVicePresident,StrategyandPublicPolicyArchCoalMarkCalmesVicePresident,EnvironmentalArcherDanielsMidlandCompanyKurtWaltzerManagingDirectorCleanAirTaskForceD.MichaelLangfordNationalPresidentUtilityWorkersUnionofAmerica,AFL-CIORichard

R. Lancaster Vice President and Chief Generation Officer Great River Energy Josh Freed Vice President for Clean Energy Third Way Robert

G
. Mannes President

& C.E.O. Core Energy, LLC **~~~** Hunter Johnston Counsel Lake Charles Methanol, LLC NEORI Participants

Don Gales White Energy Chief Eecutive Officer

& President Tom Willis Chief Executive Office Conestoga Energy Partners, LLC Bill Rase Executive Director Port of ake Charles, Louisiana AFL-CIO

I AIR PRODUCTS, INc.

I ALSTOM, INc.

I ARCH CoAL, INc.

I ARCHER DANIELS MIDLAND co.

I C12 ENERGY

I CLEAN AIR TASK FORCE

I CLOUD PEAK ENERGY, INC.

I ENERGY INNOVATION REFORM PROJECT

I GE OIL & GAS

I GREAT RIVER ENERGY

I JUPITER OXYGEN CORPORATION

I KENTUCKY DEPT. FOR ENERGY DEVELOPMENT AND INDEPENDENCE

I LAKE CHARLES METHANOL

I LINDE LLC.

I LI-COR BIOSCIENCES

I MARYLAND DEPARTMENT

OF NATURAL RESOURCES

I MICHIGAN GEOLOGICAL SURVEY

I NATURAL RESOURCES DEFENSE COUNCIL

I NEW MEXICO ENERGY, MINERALS

& NATURAL RESOURCES DEPARTMENT

I NRG ENERGY

I PEABODY ENERGY

I PRAXAIR, INC.

I SMART TRANSPORTATION DIVISION

I SUMMIT POWER GROUP, LLC

I TENASKA ENERGY

I UTILITY WORKERS UNION OF AMERICA

I WYOMING ENHANCED OIL RECOVERY INSTITUTE

I WYOMING OUTDOOR COUNCIL NEORI Observers CHAPARRAL ENERGY LLC

I CORE ENERGY, LLC

I INTERSTATE OIL AND GAS COMPACT COMMISSION

I TELLUS OPERATING GROUP, LLC.