Low production oil and gas well tax exemption.

2016
STATE OF WYOMING
16LSO-0390
Introduced
1.2

HOUSE BILL

NO.

HB0125

Low production oil and gas well tax exemption.

Sponsored by:
Representative(s) Miller, Gay, Kasperik, Krone, Madden, McKim, Pownall and Walters

A BILL

for

AN ACT relating to taxation and revenue; modifying an existing exemption and providing an additional severance tax exemption for stripper production of oil wells; providing a severance tax exemption for natural gas wells as specified; amending the definition of "stripper production" to include natural gas wells; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section
1
.

W.S.
39
‑
14
‑
201(
a)(xxiv)

and
39
‑
14
‑
205(a)
are amended to read:

39
‑
14
‑
201
.

Definitions.

(a)

As used in this article:

(xxiv)

"Stripper production" means the production from a property or lease whose average daily production of crude petroleum
or natural gas

from wells reported as oil
or
natural
gas

wells to the Wyoming oil and gas commission did not exceed:

(A)

Ten (10) barrels per day per
stripper oil

well during the preceding calendar year if the average price received by the producer for production from the property was
twenty dollars ($20.00)

thirty dollars ($30.00)
or more per barrel;
or

(B)

Fifteen (15) barrels per day per
stripper oil

well during the preceding calendar year if the average price received by the producer for production from the property was less than
twenty dollars ($20.00)

thirty dollars ($30.00)
per barrel
;
.

or

(C)

Fifty
(
50
)

MCF
per day per
stripper
natural gas
well during
the preceding calendar year
.

39
‑
14
‑
205
.

Exemptions.

(a)

Stripper production is exempt from the severance taxes imposed by W.S. 39
‑
14
‑
204(
a)(iii).

S
tripper
oil wells under W.S. 39
‑
14
‑
201(
a)(xxiv)(B) shall be exempt from
the severance taxes imposed by W.S. 39
‑
14
‑
204(a)(iv)
.

S
tripper natural gas wells
under W.S. 39
‑
14
‑
201(a)(xxiv)(C) shall be exempt from the severance taxes imposed by W.S. 39
‑
14
‑
204(a)(iv) when

the

average price of natural gas
received by the producer f
o
r production on the property
is less than
two
dollars
and fifty cents
($
2.
50) per MCF
during the proceeding calendar year
.

Section 2
.

This act is effective July 1, 2016
.

(END)

1
HB0125