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Wyoming2010Inactive

HB0078

Natural Gas Tax Valuation Rules

Last scannedOct 18, 2026, 2:19 AM

In one sentence

This bill defines how to value natural gas for tax purposes by clarifying the difference between dehydration and processing facilities.

What it does

  • Defines a dehydrator as a facility whose primary purpose is to remove water vapor from raw natural gas.
  • States that a dehydrator is not considered a processing facility, regardless of its size or complexity.
  • Sets the point of tax valuation at the outlet of the initial dehydrator.
  • Allows producers to deduct certain processing costs if processing happens inside the initial dehydrator.
  • Specifies that the production process is complete after gathering and dehydration, or at the inlet of a processing facility if no dehydration occurs.

Who it affects

  • Natural gas producers who operate dehydration facilities.
  • The Wyoming Department of Revenue, which calculates tax values.
  • Companies involved in gathering and processing natural gas in Wyoming.

Limits and unknowns

  • The bill is marked as inactive and did not pass the Senate in the 2010 session.
  • The text references a specific court case, Exxon Mobil Corporation v. Department of Revenue, to explain the legislative intent.
  • The bill applies to natural gas produced on or after July 1, 2011.

Plain language

Terms to know

Dehydrator
A facility that removes water vapor from raw natural gas. It is not considered a processing facility.
Processing facility
A facility located after dehydration that separates natural gas into different components for sale.
Point of valuation
The specific stage in the production process where the value of the gas is determined for tax purposes.

Official record

Sources

Source checked
Official bill pageIntroduced textOfficial digestCurrent bill text

Public statements

Why lawmakers voted

Last checked Aug 8, 6:19 AM

Voted Yes

Why they voted this way

The lawmaker supports the bill because its delayed effective date allows time for an interim study to ensure fair and equal taxation, rather than letting ambiguous rulings create loopholes.

Public statementFloor statement at 39:05 Watch the statement
Voted Yes

Why they voted this way

The lawmaker supports the bill because he believes it simplifies definitions to eliminate litigation, will not reduce jobs at the facility, and has strong support from his county's mineral industry.

Public statementFloor statement at 40:13 Watch the statement
Voted Yes

Why they voted this way

The lawmaker supports the bill to address constitutional issues regarding tax deductions, prevent unfair treatment between similarly situated producers, and close potential loopholes.

Public statementFloor statement at 43:25 Watch the statement
Voted No

Why they voted this way

The lawmaker opposes the bill because it taxes a unique facility incorrectly, potentially shutting down a marginal operation that provides high-paying jobs and investment opportunities in Wyoming.

Public statementFloor statement at 46:20 Watch the statement

Wyoming roll calls

Recorded votes

4 roll calls

S Committee Returned Bill Pursuant to SR 7-3(c) 2-3-0-0-02010-03-05 · Senate2 yes 3 no
Yes
2
No
3
Absent
0
Excused
0
Conflict
0

Yes 2

Cale CaseR · S25John C SchifferS22

No 3

Drew A PerkinsS29Grant C LarsonS17Marty A MartinS12
H Passed 3rd Reading 36-21-3-0-02010-02-23 · House36 yes 21 no
Yes
36
No
21
Absent
0
Excused
3
Conflict
0

Yes 36

Allen M JaggiH18Amy L EdmondsH12Bernadine CraftH17Bill ThompsonH60Bryan K PedersenH07Catherine R ConnollyH13Colin SimpsonH24Debbie HammonsH27Del McOmieH54George BagbyH15Gregory R BlikreH53Jack D Landon Jr.H30James A RoscoeH22James W ByrdH44John D Bonner Jr.H25Joseph M BarbutoH48Keith M GingeryH23Ken A EsquibelH41Kermit C BrownH14Lori A MillinH08Mary A ThroneH11Mary W HalesH36Matt TeetersH05Michael A GilmoreH59Michael K MaddenH40Pete JorgensenH16Robert M McKimH21Rodney "Pete" AndersonH10Rosie M BergerH51Ross DiercksH02Seth A CarsonH45Stanley L BlakeH39Steve HarshmanR · H37Tom Lubnau IIH31William "Jeb" StewardH47W. Patrick P GogglesH33

No 21

David R MillerH55Dn.Edward BuchananH04Elaine HarveyH26Frank D PeasleyH03Glenn W MonizH46John W PattonH29Kathleen DavisonH20Lisa A SheppersonH58Lorraine K QuarbergH28Mark SemlekH01Owen PetersenH19Peter S IllowayH42Richard L CannadyH06Robert A BrechtelH38Roy CoheeH35Sue E WallisH52Terry L KimbleH49Thomas A LockhartH57Timothy M StubsonH56Zwonitzer

Excused 3

Frank PhilpH34Pat ChildersH50Timothy P HallinanH32
H03 Recommended Amend and Do Pass 5-4-0-0-02010-02-17 · House5 yes 4 no
Yes
5
No
4
Absent
0
Excused
0
Conflict
0

Yes 5

Amy L EdmondsH12Ken A EsquibelH41Michael K MaddenH40Owen PetersenH19W. Patrick P GogglesH33

No 4

David R MillerH55Mark SemlekH01Rodney "Pete" AndersonH10Sue E WallisH52
H Introduced and Referred to H03 47-11-2-0-02010-02-10 · House47 yes 11 no
Yes
47
No
11
Absent
0
Excused
2
Conflict
0

Yes 47

Allen M JaggiH18Amy L EdmondsH12Bernadine CraftH17Bill ThompsonH60Bryan K PedersenH07Catherine R ConnollyH13Colin SimpsonH24Debbie HammonsH27Del McOmieH54Dv.Elaine HarveyH26Frank D PeasleyH03George BagbyH15Glenn W MonizH46Gregory R BlikreH53Jack D Landon Jr.H30James A RoscoeH22James W ByrdH44John D Bonner Jr.H25John W PattonH29Joseph M BarbutoH48Keith M GingeryH23Ken A EsquibelH41Kermit C BrownH14Lori A MillinH08Mark SemlekH01Mary A ThroneH11Mary W HalesH36Matt TeetersH05Michael A GilmoreH59Michael K MaddenH40Owen PetersenH19Pete JorgensenH16Richard L CannadyH06Robert M McKimH21Rodney "Pete" AndersonH10Rosie M BergerH51Ross DiercksH02Roy CoheeH35Seth A CarsonH45Stanley L BlakeH39Steve HarshmanR · H37Sue E WallisH52Terry L KimbleH49Tom Lubnau IIH31William "Jeb" StewardH47W. Patrick P GogglesH33

No 11

David R MillerH55Dn.Edward BuchananH04Kathleen DavisonH20Lisa A SheppersonH58Lorraine K QuarbergH28Pat ChildersH50Peter S IllowayH42Robert A BrechtelH38Thomas A LockhartH57Timothy M StubsonH56

Excused 2

Frank PhilpH34Timothy P HallinanH32

Official activity

Bill history

  1. S Committee Returned Bill Pursuant to SR 7-3(c)Senate
  2. S Introduced and Referred to S03;No Report Prior to COW CutoffSenate
  3. S Received for IntroductionSenate
  4. H Passed 3rd ReadingHouse
  5. Amendment AdoptedHouse
  6. H Passed 2nd ReadingHouse
  7. H Passed CoWHouse
  8. Amendment AdoptedHouse
  9. H Amendments AdoptedHouse
  10. Amendment AdoptedHouse
  11. H Placed on General FileHouse
  12. H03 Recommended Amend and Do PassHouse
  13. H Introduced and Referred to H03House
  14. H Received for IntroductionHouse
  15. Bill Number AssignedLSO

Changes

Amendments

4 stored

HB0078H3001

Withdrawn 3rd reading by MILLER

HB0078H3002

Adopted 3rd reading by LUBNAU

HB0078HW001

Adopted, Corrected Committee of the Whole by BUCHANAN

HB0078HS001

Adopted Standing Committee by H03