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Senate Bill 533 |
Senate Author: Birdwell et al. |
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Effective: 9-1-19 |
House Sponsor: Paddie et al. |
Senate Bill 533 amends provisions of the Tax Code providing a severance tax exemption for oil and gas produced from certain inactive wells to remove provisions relating to the designation of a well as a three-year inactive well for purposes of that exemption and to reduce from 10 years to five years the duration of the exemption for a two-year inactive well. The bill excludes from the wells designated as two-year inactive wells a well that either is part of an enhanced oil recovery project or that is drilled but not completed and does not have a record of hydrocarbon production reported to the Railroad Commission of Texas. The bill removes the prohibition against the railroad commission designating a two-year inactive well after February 28, 2010.