By OGJ editors
HOUSTON, Nov. 8 -- California voters rejected a state ballot measure that would have taxed state oil production at rates depending on the price of crude and used the revenue to finance development of alternative energy (OGJ, Nov. 6, 2006, p. 76).
With 90% of the votes counted, returns indicated Proposition 87 was defeated 55% to 45%, officials said Nov. 7.
Oil companies, particularly Chevron Corp., opposed Proposition 87. If Proposition 87 had passed, the California government would have collected an estimated $200-380 million/year in new tax revenue, but opponents said it would have caused a reduction in state oil production and a need for increased imports.
