HB0189

Official summary

Bill Summary - 21LSO-0288 Bill No.: HB0189 Effective: Multiple Dates LSO No.: 21LSO-0288 Enrolled Act No.: HEA No. 0090 Chapter No.: 156 Prime Sponsor: Hunt Catch Title: Mine product taxes for natural gas consumed on-site. Subject: Clarifying the applicability of severance taxes for natural gas consumed on-site. Summary/Major Elements: Under current law, natural gas that is vented and flared on-site, that is reinjected or consumed before sale to maintain, treat, or transport crude oil or natural gas, or that is consumed before sale to treat by-product water is exempt from severance taxes. This act provides that natural gas that is consumed for any other purpose is subject to severance taxes. The act clarifies that natural gas that is consumed on-site and would have been vented and flared is exempt from taxation as long as the gas comes from a qualifying well, which is a well in which: (1) a well site is already connected to a pipeline, but the pipeline lacks takeaway capacity; (2) a producer's well is not connected to an existing pipeline but the producer's lands are dedicated to a pipeline operator; or (3) a producer's well is not connected to an existing pipeline but is not contractually dedicated, and the producer files an attestation to that. The act requires the Department of Revenue to adopt rules to implement the changes in this act. Comments: The act is effective on January 1, 2022, but the rulemaking authority is effective immediately. 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.