|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to severance tax credits for qualifying low-producing |
|
wells. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Sections 201.059(c), (d), and (e), Tax Code, are |
|
amended to read as follows: |
|
(c) An operator of a qualifying low-producing well is |
|
entitled to a 25 percent credit on the tax otherwise due on gas |
|
produced and saved from that well during a month if the average |
|
taxable price of gas certified by the comptroller under Subsection |
|
(b) for the previous three-month period is more than $4.50 [$3] per |
|
mcf but not more than $5 [$3.50] per mcf. |
|
(d) An operator of a qualifying low-producing well is |
|
entitled to a 50 percent credit on the tax otherwise due on gas |
|
produced and saved from that well during a month if the average |
|
taxable price of gas certified by the comptroller under Subsection |
|
(b) for the previous three-month period is more than $4 [$2.50] per |
|
mcf but not more than $4.50 [$3] per mcf. |
|
(e) An operator of a qualifying low-producing well is |
|
entitled to a 100 percent credit on the tax otherwise due on gas |
|
produced and saved from that well during a month if the average |
|
taxable price of gas certified by the comptroller under Subsection |
|
(b) for the previous three-month period is not more than $4 [$2.50] |
|
per mcf. |
|
SECTION 2. Section 202.058(a)(2), Tax Code, is amended to |
|
read as follows: |
|
(2) "Qualifying low-producing oil lease" means a well |
|
classified as an oil well that is part of a lease whose production |
|
during a 90-day period is less than: |
|
(A) 15 barrels of oil per day of production; or |
|
(B) 10 [five] percent recoverable oil per barrel |
|
of produced water. |
|
SECTION 3. Sections 202.058(c), (d), (e), and (f), Tax |
|
Code, are amended to read as follows: |
|
(c) Each month, the comptroller shall certify the average |
|
taxable price of oil, adjusted to 2005 dollars, during the previous |
|
three months based on various price indices available to producers, |
|
including the reported Texas Panhandle Spot Price, West Texas |
|
Intermediate Crude Spot Price, West Texas sour at 34 gravity [New
|
|
York Mercantile Exchange], or other spot prices, as applicable. |
|
The comptroller shall publish certifications under this subsection |
|
in the Texas Register. |
|
(d) An operator of a qualifying low-producing lease is |
|
entitled to a 25 percent credit on the tax otherwise due on oil |
|
produced from that lease during a month if the average taxable price |
|
of oil certified by the comptroller under Subsection (c) for the |
|
previous three-month period is more than $44 [$25] per barrel but |
|
not more than $48 [$30] per barrel. |
|
(e) An operator of a qualifying low-producing lease is |
|
entitled to a 50 percent credit on the tax otherwise due on oil |
|
produced from that lease during a month if the average taxable price |
|
of oil certified by the comptroller under Subsection (c) for the |
|
previous three-month period is more than $38 [$22] per barrel but |
|
not more than $44 [$25] per barrel. |
|
(f) An operator of a qualifying low-producing lease is |
|
entitled to a 100 percent credit on the tax otherwise due on oil |
|
produced from that lease during a month if the average taxable price |
|
of oil certified by the comptroller under Subsection (c) for the |
|
previous three-month period is not more than $38 [$22] per barrel. |
|
SECTION 4. (a) Sections 201.059(g) and 202.058(h), Tax |
|
Code, are repealed. |
|
(b) This section takes effect August 27, 2007. |
|
SECTION 5. The change in law made by this Act does not |
|
affect tax liability accruing before the effective date of this |
|
Act. That liability continues in effect as if this Act had not been |
|
enacted, and the former law is continued in effect for the |
|
collection of taxes due and for civil and criminal enforcement of |
|
the liability for those taxes. |
|
SECTION 6. Except as otherwise provided by this Act, this |
|
Act takes effect September 1, 2007. |