While California debates Proposition 87, and whether oil companies should be taxed at all, Algeria has decided to place a tax on excessive profits:

From early 2007, profits accrued by firms when prices are above $30 a barrel will be taxed at between 5% and 50% depending on total output.

The tax will apply to existing production agreements between the state oil firm and private operators as well as those signed in the future.

In addition, it will be mandatory for Sonatrach to be involved in all future energy development projects and it will be entitled to a 51% stake in production and refining contracts with foreign firms.

“This will have a positive effect on future generation,” Chakib Khelil, Algeria’s energy minister, said of the measures.

“It is a gain for the public good as that will reinforce the state’s role in monitoring the sector.”

The article does not say whether any of the money from the taxes will be used to counter-act the harmful effects of petroleum waste and pollution.