By: Flores S.B. No. 925
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to calculation of daily production for purposes of the oil
  and gas production tax credits for low-producing wells and leases.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 201.059(a)(3), Tax Code, is amended to
  read as follows:
               (3)  "Qualifying low-producing well" means a gas well
  whose production during a three-month period is no more than 90 mcf
  per day, excluding gas flared pursuant to the rules of the
  commission.  For purposes of qualifying a gas well, production per
  well per day is determined by computing the average daily
  production from the well using the greater of the monthly
  production from the well as reported in the monthly well production
  reports [report] made to the commission and the monthly production
  from the well as reported in the producer's reports made to the
  comptroller under Section 201.203, including any amendments to
  those reports.
         SECTION 2.  Section 202.058(b), Tax Code, is amended to read
  as follows:
         (b)  For purposes of qualifying a lease, production per well
  per day is determined by computing the average daily per well
  production from the lease using the greater of the monthly
  production from the well as reported in the monthly lease
  production reports [report] made to the commission and the monthly
  production from the well as reported in the producer's reports made
  to the comptroller under Section 202.201, including any amendments
  to those reports.  For purposes of qualifying a lease, production
  per well per day is measured by dividing the sum of lease production
  during the three-month period by the sum of the number of well-days,
  where a well-day is one well producing for one day.  The operator of
  a lease that is eligible for a credit under this section only on the
  basis of Subsection (a)(2)(B) must pay to the comptroller a filing
  fee of $100 before the comptroller may authorize the credit.
         SECTION 3.  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 4.  This Act takes effect September 1, 2019.