Withdrawn 3rd reading by GAY
Wyoming2006Did Not Pass
HB0043
Natural Gas Valuation
Last scannedOct 18, 2026, 2:19 AM
In one sentence
This bill proposed a new method for calculating the tax value of natural gas when the producer also owns the processing facility, but it did not pass.
What it does
- Creates a new valuation method called 'Netback – Producer/processor' to determine the fair market value of natural gas processed by the producer.
- Defines terms such as 'rate of return,' 'return on investment,' 'total direct processing costs,' and 'gross capital investment' for tax calculations.
- Sets the rate of return at 10.25% per year for calculating returns on investment.
- Requires the department to apply this method to producer-processors who do not qualify for the comparable value method.
- Requires the department to submit a report to the governor and the joint revenue interim committee by October 1, 2008.
- Repeals two existing sections of the tax code related to natural gas valuation.
Who it affects
- Producers of natural gas who own part or all of the processing facility where their gas is processed.
- The state department responsible for taxation and revenue.
- The governor and the joint revenue interim committee, who would receive a report on the method's operation.
Limits and unknowns
- The bill did not pass and did not become law in the 2006 session.
- The provided bill text is labeled as a 'Working Draft,' which may differ from final legislative versions.
- The bill specified applicability to production on and after January 1, 2006, but these rules were not enacted because the bill failed.
Plain language
Terms to know
- Netback – Producer/processor
- A method where the fair market value is the total amount received from the sale of natural gas minus total direct processing costs, return on investment, and transportation expenses.
- Rate of return
- A fixed rate of 10.25% per year used in the calculation of return on investment.
- Total direct processing costs
- Costs incurred within the processing facility, including salaries, repairs, fuel, chemicals, and environmental compliance fees.
- Gross capital investment
- The total gross capitalized investment in the processing facility, determined according to generally accepted accounting principles based on the company's books and records.
Official record
Sources
Public statements
Why lawmakers voted
Last checked Aug 8, 8:08 PM
Couldn't find a published reason.
Wyoming roll calls
Recorded votes
3 roll calls
H Failed 3rd Reading 29-31-0-0-02006-02-28 · House29 yes 31 no
- Yes
- 29
- No
- 31
- Absent
- 0
- Excused
- 0
- Conflict
- 0
Yes 29
Ann RobinsonH58Bruce BarnardH49Burke JacksonH52David R EdwardsH06Debbie HammonsH27Del McOmieH54Doug SamuelsonH07EsquibelFrank PhilpH34George BagbyH15James C HagemanH05Jeff WasserburgerH32John HastertH39Kathleen DavisonH20Keith M GingeryH23Kurt BucholzH47Layton D MorganH12Lorraine K QuarbergH28Mary GilmoreH59Mick PowersH18Monte OlsenH22Pete JorgensenH16Randall B LuthiH21Rodney "Pete" AndersonH10Rosie M BergerH51Ross DiercksH02Steve HarshmanR · H37Tom WalshH56W. Patrick P GogglesH33
No 31
Alan C JonesH25Becket HinckleyH41Bill ThompsonH60Colin SimpsonH24David R MillerH55Deborah AldenH03Douglas OsbornH40Edward BuchananH04Elaine HarveyH26Erin E Mrs. MercerH53Gerald GayH36Jack D Landon Jr.H30Jane WarrenH13Jerry IekelH29Jim SlaterH46Kermit C BrownH14Kevin A WhiteH45Larry MeuliH08Mark SemlekH01Marty A MartinH48Owen PetersenH19Pat ChildersH50Peter S IllowayH42Robert A BrechtelH38Roy CoheeH35Stephen D WattH17Thomas A LockhartH57Tom Lubnau IIH31Wayne ReeseH11Zwonitzer, DK.Zwonitzer, DL.
H03 Recommended Do Pass 5-4-0-0-02006-02-24 · House5 yes 4 no
- Yes
- 5
- No
- 4
- Absent
- 0
- Excused
- 0
- Conflict
- 0
H Introduced and Referred to H03 59-0-1-0-02006-02-14 · House59 yes 0 no
- Yes
- 59
- No
- 0
- Absent
- 0
- Excused
- 1
- Conflict
- 0
Yes 59
Alan C JonesH25Ann RobinsonH58Becket HinckleyH41Bill ThompsonH60Bruce BarnardH49Colin SimpsonH24David R EdwardsH06David R MillerH55Debbie HammonsH27Deborah AldenH03Del McOmieH54Douglas OsbornH40Doug SamuelsonH07Edward BuchananH04Elaine HarveyH26Erin E Mrs. MercerH53EsquibelFrank PhilpH34George BagbyH15Gerald GayH36Jack D Landon Jr.H30James C HagemanH05Jane WarrenH13Jeff WasserburgerH32Jerry IekelH29Jim SlaterH46John HastertH39Kathleen DavisonH20Keith M GingeryH23Kermit C BrownH14Kevin A WhiteH45Kurt BucholzH47Larry MeuliH08Layton D MorganH12Lorraine K QuarbergH28Mark SemlekH01Marty A MartinH48Mary GilmoreH59Mick PowersH18Monte OlsenH22Owen PetersenH19Pat ChildersH50Pete JorgensenH16Peter S IllowayH42Randall B LuthiH21Robert A BrechtelH38Rodney "Pete" AndersonH10Rosie M BergerH51Ross DiercksH02Roy CoheeH35Stephen D WattH17Steve HarshmanR · H37Thomas A LockhartH57Tom Lubnau IIH31Tom WalshH56Wayne ReeseH11W. Patrick P GogglesH33Zwonitzer, DK.Zwonitzer, DL.
Excused 1
Official activity
Bill history
- H Failed 3rd ReadingHouse
- H Passed 2nd ReadingHouse
- H Passed CoWHouse
- H Placed on General FileHouse
- H03 Recommended Do PassHouse
- H Introduced and Referred to H03House
- H Received for IntroductionHouse
- Bill Number AssignedLSO
Changes
Amendments
1 stored