Official Summary Text
Bill Summary - 26LSO-0159
Bill No.:
HB0128
Effective:
7/1/2026
LSO No.:
26LSO-0159
Enrolled Act No.:
HEA No. 0018
Chapter No.:
46
Prime Sponsor:
Tarver
Catch Title:
Enhanced oil recovery-severance tax exemption.
Has Report:
Yes
Subject:
Providing a severance tax exemption for tertiary oil production.
Summary/Major Elements:
This act provides an exemption from the severance taxes charged in W.S. 39-14-204(a)(iii) (which is a two percent (2%) severance tax) for tertiary production resulting from enhanced oil recovery projects that the Oil and Gas Conservation Commission certifies.
This exemption applies to tertiary production from projects certified between July 1, 2026 and July 1, 2031, and the exemption applies for a period of five (5) years from the date of the first tertiary production from the project.
Under current law, tertiary production is oil that is recovered from a petroleum reservoir by means of a tertiary enhanced recovery project using at least one tertiary recovery technique that meets state or federal requirements.
The act requires the Department of Revenue and the Oil and Gas Conservation Commission to report annually on the tertiary production qualifying for the severance-tax exemption provided in this act until November 1, 2036.
Comments:
This act requires an annual report from the Department of Revenue and the Oil and Gas Conservation Commission until November 1, 2036.
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
Read the full stored bill text
26LSO-0159
ORIGINAL House
ENGROSSED
Bill No
.
HB0128
ENROLLED ACT NO. 18,
HOUSE OF REPRESENTATIVES
SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2026 Budget Session
AN ACT relating to taxation and revenue; providing a severance tax exemption for tertiary oil production as specified; requiring reports; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1
.
W.S. 39
‑
14
‑
205 by creating a new subsection (q) is amended to read:
39
‑
14
‑
205.
Exemptions.
(q)
Tertiary production resulting from projects certified by the Wyoming oil and gas conservation commission after July 1, 2026 and before July 1, 2031 is exempt from the severance taxes imposed by W.S. 39
‑
14
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204(a)(iii) for a period of five (5) years from the date of first tertiary production. Not later than November 1, 2026 and each November 1 thereafter until November 1, 2036, the oil and gas conservation commission and the department shall report on the tertiary production qualifying for the exemption under this subsection. The report shall include the amount of production, the number of operators qualifying for the exemption, the number of wells, the amount of severance taxes paid on that production, the amount of severance taxes exempted under this subsection and the ad valorem and sales taxes paid in connection with that production.
Section 2
.
This act is effective July 1, 2026
.
(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