Enrolled Bill Summary

            The Tax Code provides an oil severance tax exemption of 10 years duration for hydrocarbons produced from certain wells that were returned to production after a three-year period of relative inactivity. The deadline for certification of such wells has passed, but Senate Bill 126 creates a new category of two-year inactive wells, which may be certified by the Railroad Commission of Texas until February 29, 2000. The application period for such certification extends from September 1, 1997, through August 31, 1999, and, unlike the case with three-year wells, the commission may not designate a two-year well unilaterally without an application. The act amends provisions relating to the deadline for refunds on taxes paid previous to exemption approval.