Enrolled Bill Summary

            Senate Bill 1440 amends the Tax Code to grant oil and gas severance tax credits applicable to marginal oil wells where incremental production techniques are applied to boost production. Upon meeting certain requirements, the operator for five years receives a 50 percent severance tax exemption on an amount of oil equal to the lease's monthly production multiplied by the incremental ratio. The act dedicates revenue from incremental production from a qualifying lease to funding of the Texas tuition assistance grant program. A separate gas severance tax exemption applies to oil wells or leases where gas has been flared for 12 or more months under rules of the Railroad Commission of Texas. If an operator begins marketing rather than flaring the gas, that gas is exempt from the tax for the life of the well or lease.