Oil and Gas Tax Exemption for New Production
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Bill Summary - 20LSO-0585 Bill No.: HB0243 Effective: 7/1/2020 12:00:00 AM LSO No.: 20LSO-0585 Enrolled Act No.: HEA No. 0097 Chapter No.: 155 Prime Sponsor: Burkhart Catch Title: Oil and gas tax-new production. Subject: Tax exemption for specified oil and gas production. Summary/Major Elements: The current severance tax rate for oil and gas production is 6%. This act provides that for oil and gas wells drilled after July 1, 2020 and prior to December 31, 2025, the severance tax rate will be four percent (4%) for the first six (6) months of production and five percent (5%) for the next six (6) months of production. The exemption will not apply to gas production when the twelve (12) month rolling average of the Henry hub spot price for natural gas is two dollars and ninety-five cents ($2.95) or more per thousand cubic feet at the time of first production and will not apply to the production of crude oil when the twelve (12) month rolling average of the West Texas Intermediate spot price of sweet crude oil is fifty dollars ($50.00) or more per barrel at the time of first production. The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent. While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.
Public statements
Last checked Aug 11, 6:33 PM
Why they voted this way
The lawmaker opposes the bill because it diverts up to $150 million from the legislative stabilization reserve account, which is needed to address education funding deficits.
R · H08
Why they voted this way
The lawmaker argues that reducing the tax exemption period from twelve months to six months is necessary because oil wells typically decline in production after the first six months, making the extended exemption unnecessary.
Why they voted this way
The lawmaker agrees with the chairman's assessment regarding the need to understand the intent behind the bill changes before proceeding, supporting a no vote.
Why they voted this way
The lawmaker supports the bill because it is not a giveaway and addresses the reality that operators are working out of cash flow due to high severance taxes compared to neighboring states.
R · H09
Why they voted this way
The lawmaker supports the amendment to ensure local communities can provide input before land exchanges occur in their areas.
If a lawmaker is not listed, we couldn't find a published reason.
Wyoming roll calls
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Official activity
Changes
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The amendment modifies the bill to specify periods and price environments for tax exemptions on crude oil and natural gas production, adjusts distribution of additional taxes, and removes certain sunset provisions.
The amendment changes the duration of an exemption from a tax on crude oil and natural gas production.
The amendment removes certain sections and language from the bill that relates to oil and gas tax exemptions.
The amendment to HB0243 removes certain time periods and dollar amounts related to oil and gas tax exemptions.
The amendment changes the number of years from six to twelve for certain provisions related to oil and gas tax exemptions.
The amendment removes certain sections and lines from the bill related to oil and gas tax exemptions, altering how the bill's text is structured.