Monthly ad valorem tax revisions-enforcement.

Plain English Breakdown

The official summary and text do not provide specific details on how the law updates existing laws, only that penalties and enforcement provisions are added.

Monthly Ad Valorem Tax Revisions and Enforcement

This law allows for penalties on oil and gas companies if they do not pay their taxes on time, including shutting down wells until the taxes are paid.

What This Bill Does

• Adds a penalty for oil and gas companies that fail to make timely payment of severance or ad valorem taxes on mineral production.
• Gives the Oil and Gas Conservation Commission power to shut down wells if unpaid taxes related to mineral production are over 120 days old.
• Requires the commission to lift penalties once all overdue taxes have been paid.

Who It Names or Affects

• Oil and gas companies that produce minerals in Wyoming
• The Oil and Gas Conservation Commission

Terms To Know

Ad Valorem Tax

A tax based on the value of a property or product.

Severance Tax

A tax charged when natural resources are extracted from the ground.

Limits and Unknowns

• The law only applies to companies that have unpaid taxes over 120 days old.
• It does not specify what happens if a company fails to pay after their wells are shut down.

Official Summary Text

Bill Summary - 22LSO-0260
Bill No.:

HB0089

Effective:

7/1/2022 12:00:00 AM

LSO No.:

22LSO-0260

Enrolled Act No.:

HEA No. 0040

Chapter No.:

79

Prime Sponsor:

Greear

Catch Title:

Monthly ad valorem tax revisions-enforcement.

Subject:

Monthly ad valorem tax revisions-enforcement.

Summary/Major Elements:

This act provides an additional penalty for failure to make timely payment for severance taxes or ad valorem taxes on mineral production.

This act authorizes the Oil and Gas Conservation Commission to order wells shut in and sealed, and to prohibit drilling, if a taxpayer is more than one hundred twenty (120) days delinquent on taxes related to mineral production. The Commission is required to remove the penalty when the unpaid taxes have been paid.
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.

Current Bill Text

22LSO-0260

ORIGINAL House

Bill No
.
HB0089

ENROLLED ACT NO. 40,

HOUSE OF REPRESENTATIVES

SIXTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING
2022 Budget Session

AN ACT relating to mineral production; allowing for regulation of oil and gas production until unpaid taxes are paid; making conforming changes; and providing for an effective date.

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

Section 1.

W.S. 30
‑
5
‑
104(d) by creating a new paragraph (x), 39
‑
13
‑
113(e)(intro) and 39
‑
14
‑
208(d) by creating a new paragraph (vi) are amended to read:

30
‑
5
‑
104.

Oil and gas conservation commission; powers and duties; investigations; rules and regulations.

(d)

The commission has authority:

(x)

After notice and hearing, to order wells shut in and sealed and to prohibit drilling upon written notice from the department of revenue that an owner or operator owes taxes that are more than one hundred twenty (120) days delinquent under W.S. 39
‑
13
‑
113 or 39
‑
14
‑
207(a)(iv) or (v). The commission shall remove any regulation of shutting in or sealing wells or prohibition on drilling issued under this paragraph upon written notice from the department of revenue that the delinquent unpaid taxes have been paid.

39
‑
13
‑
113.

Monthly payment of ad valorem tax on gross product of mineral production.

(e)

Failure to make payments at the time they are due and payable under this section shall subject the taxpayer to the enforcement provisions of W.S.
30
‑
5
‑
104(d)(x) and
39
‑
13
‑
108 and shall also be subject to enforcement as follows:

39
‑
14
‑
208.

Enforcement.

(d)

Penalties.

The following shall apply:

(vi)

Failure to make severance tax payments at the time they are due and payable under W.S. 39
‑
14
‑
207(a)(iv) and (v) shall subject the taxpayer to enforcement by the oil and gas conservation commission under W.S. 30
‑
5
‑
104(d)(x).

Section 2
.

This act is effective July 1, 2022
.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

1