Present law, pursuant to the authority of present constitution, levies severance taxes on all natural resources severed from the soil or water, including all forms of timber, including pulp woods, turpentine, and other forest products; minerals such as oil, gas, natural gasoline, distillate, condensate, casinghead gasoline, sulphur, salt, coal, lignite, and ores; marble, stone, sand, shells, and other natural deposits; and the salt content in brine.
Present law provides that production of natural gas, gas condensate, and oil from any well drilled to a true vertical depth of more than 15,000 feet shall be exempt from severance tax, from the date production begins, for 24 months or until payout of the well cost, whichever comes first.
Proposed law retains present law and provides that for purposes of eligibility for the exemption, the date production begins may be a date subsequent to the well completion date.
Proposed law stipulates that its provisions shall apply to each Application for Well Status Determination (Deep Well) filed with the office of conservation of the Dept. of Natural Resources on or after Jan. 1, 2023. Provides that each applicant who filed such an application on or after Jan. 1, 2023, and prior to the effective date of proposed law shall be permitted to amend its application to conform with the provisions of proposed law.
Proposed law establishes that its provisions are procedural and interpretive.
Effective July 1, 2023.