Legislative
Watch
Both of the following bills were still in committee at press time Michigan SB140 – Proposes to double the oil and gas monitoring fee from 1% to 2%, capped at 2% of gross value, to support monitoring and enforcement.
Pennsylvania SB910 – Introduces a 6.5% severance tax on the gross value of natural gas starting January 1, 2026.
Legislative
Recap
Louisiana HB404 – Reduces the interest rate on delinquent tax liabilities. HB495 – Narrows the horizontal well gas exemption duration (18–24 months based on completion date). HB600 – Reduces oil severance tax rates on certain wells, including incapable, stripper, inactive, and orphan wells. New Mexico HB218 – Updates severance tax definitions to include slop oil, sediment oil, and skim oil, and adjusts the calculation method for advance payments. North Dakota SB2397 – Encourages innovative drilling by exempting the first 250,000 barrels of oil from a development incentive well from the 5% extraction tax. HB1483 – Expands the reduced 2% extraction tax to the first 300,000 barrels for new wells outside Bakken/Three Forks. Oklahoma HB1372 – Offers a 50% production tax discount for 36 months on recovery projects from orphaned wells. Texas HB3159 – Establishes a severance tax exemption for restimulated wells with production history, with limits based on production and cost recovery. Utah SB207 – Implements an impact mitigation tax of $0.05/bbl and $0.0025/MCF on oil and gas, earmarked for local transportation infrastructure. Wyoming SF17 – Offers a $10/ton incentive for CO ₂ captured and used in enhanced oil recovery, conditional on federal 45Q credit eligibility.
Thank you to Savy Oil and Gas Consulting for these updates.
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G rowth T hrough E ducat i on - J uly / A ugus t / S ept ember 2025
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