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YOUNGSTOWN, Ohio - Ohio Representative Bob Hagan of Youngstown is questioning how the government regulates the amount of taxes oil and gas companies pay.
Oil and gas companies report revenue from production to the Ohio Department of Taxation for a severance tax.
The companies report estimates of production to the Ohio Department of Natural Resources which can be cross checked with the revenue amount.
A collaboration of journalism programs called the News Outlet reports in The Vindicator a discrepancy in the yearly production reported to the two state agencies and what's reported by the Ohio Oil and Gas Association.
"That's no different than any other industry in Ohio whether you're producing oil and gas, selling sand or socks. Essentially a company reports its revenue to the government taxation department and they're taxed accordingly," said ODNR spokesman Carlo LoParo.
Hagan said "You cannot expect people to be that honest in situations when you are dealing with millions of dollars. They're still short. They can't figure it out [...] to me it really speaks of how disorganized this whole process is."
Hagan is continuing a call for a moratorium on fracking.