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A BILL TO BE ENTITLED
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AN ACT
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relating to an exemption from the severance tax for certain gas and |
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oil produced. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 202.056, Tax Code, is amended by |
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amending Subsections (c) and (d) and adding Subsection (d-1) to |
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read as follows: |
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(c) If the commission designates a three-year inactive well |
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under this section, it shall issue a certificate designating the |
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well as a three-year inactive well as defined by Subsection (a)(3) |
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of this section. The commission may not designate a three-year |
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inactive well under this section after February 29, 1996. If the |
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commission designates a two-year inactive well under this section, |
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it shall issue a certificate designating the well as a two-year |
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inactive well as defined by Subsection (a)(4) of this section. The |
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commission may not designate a two-year inactive well under this |
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section after February 28, 2020 [2010]. |
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(d) An application for three-year inactive well |
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certification shall be made during the period of September 1, 1993, |
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through August 31, 1995, to qualify for the tax exemption under this |
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section. An application for two-year inactive well certification |
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shall be made during the period September 1, 1997, through August |
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31, 2019 [2009], to qualify for the tax exemption under this |
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section. Hydrocarbons sold after the date of certification are |
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eligible for the tax exemption. |
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(d-1) The comptroller shall certify the first date on which |
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the prices of oil and gas have been at or below the respective |
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prices described by Section 171.1011(s) for three continuous |
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months. The commission may issue a certificate under Subsection |
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(c) only if the application for certification is received by the |
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commission not later than the 90th day after the date the |
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comptroller makes the certification under this subsection. |
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SECTION 2. Subchapter B, Chapter 201, Tax Code, is amended |
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by adding Section 201.060 to read as follows: |
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Sec. 201.060. EXEMPTION FOR GAS INCIDENTALLY PRODUCED IN |
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PRODUCTION OF GEOTHERMAL ENERGY. Gas incidentally produced in the |
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production of geothermal energy is exempt from the severance tax |
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imposed by this chapter. |
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SECTION 3. Subchapter B, Chapter 202, Tax Code, is amended |
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by adding Section 202.062 to read as follows: |
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Sec. 202.062. EXEMPTION FOR OIL INCIDENTALLY PRODUCED IN |
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PRODUCTION OF GEOTHERMAL ENERGY. Oil incidentally produced in the |
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production of geothermal energy is exempt from the severance tax |
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imposed by this chapter. |
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SECTION 4. For purposes of making a certification under |
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Section 202.056(d-1), Tax Code, as added by this Act, the |
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comptroller may not consider the price of oil on dates before |
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October 1, 2009. |
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SECTION 5. Sections 201.060 and 202.062, Tax Code, as added |
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by this Act, apply only to gas or oil produced on or after the |
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effective date of this Act. Gas or oil produced before the |
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effective date of this Act is governed by the law in effect when the |
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gas or oil was produced, and the former law is continued in effect |
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for that purpose. |
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SECTION 6. This Act takes effect September 1, 2009. |