Legislative
Update
Oklahoma House Bill 2429 was signed by Governor Mary Fallin on May 31, 2017 and became effective July 1, 2017. HB2429 increases the oil and gas production tax rate for wells that are taxed at 1 percent to 4 percent. The tax increase is expected to raise about $95 million to help offset the budget deficit the state was facing for the 2018 fiscal year. Senate Bill 867 , creating the Oklahoma Energy Jobs Act of 2017, was signed by Governor Mary Fallin on May 31, 2017. The bill allows energy companies to drill long laterals, a/k/a horizontal wells that extend longer than a mile in nonshale formations. Previously, such horizontal wells were only permitted in shale formations. The Oklahoma Corporation Commission (OCC) worked within the short time frame to hold hearings and write Ad Valorem Taxation – Liens on Mineral Production: HB0220 amended provisions of a Wyoming statute relating to liens on mineral production. HB0220 amended Wyoming Statute § 39-13-108, addressing ad valorem tax lien enforcement, to specify that a lien under the section shall not apply to an owner of a royalty interest, overriding royalty, or other interest which has been carved out of the mineral estate who is not a delinquent taxpayer. The legislature passed HB0220 in order to remove ambiguities which existed as to whether or not an ad valorem tax lien could extend to these interests. Federal Land Wind and Solar Energy Revenue – State Share: SJ0002, a joint resolution passed by the legislature, may be of note to parties interested Wyoming
new rules. The OCC approved emergency rules related to the expanded lateral drilling late in August; however, Matt Skinner with the OCC stated “...this is a very complex subject. We’re quite sure that other rules will be needed and work is already underway on those. But, for now, there was broad agreement with all the stakeholders who were involved in the rulemaking process that this was as good a way to start as any.” The legislation and new rules were opposed by groups such as the Oklahoma Sierra Club, citing “concerns over continued fracking/ earthquakes/ production waste…”. The OCC is also concerned with protecting correlative rights and the numerous existing producing vertical wells in the state.
The 2017 Wyoming Legislative Session concluded in March. Passage of the following impacts the energy industry.
in renewable energy and public lands. SJ0002 calls upon the United States Congress to enact legislation requiring the federal government to share 50% of fees and revenues from wind and solar energy development on federal lands with the states where the wind and solar sites are located.
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N a t i o n a l A s s o c i a t i o n o f D i v i s i o n O r d e r A n a l y s t s
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