AR HB1992

Amends definitions of "high-cost gas" to include natural gas from shale formations (Fayetteville, Woodford, Moorefield, Chattanooga Shale), wells deeper than 12,500 feet, tight gas formations, geopressured brine, and coal seam occluded gas.

Modifies "marginal gas" definitions by setting production thresholds at 250 Mcf per day for conventional gas wells and 100 Mcf per day for high-cost gas wells, with production from all zones and multilateral branches counted together.

Repeals the definition of "payout" previously used to determine when high-cost gas wells recovered drilling, completion, and operating costs.

Establishes severance tax rates: 1.5% for new discovery gas (24 months) and high-cost gas (36 months), 1.25% for marginal gas, and 5% for other natural gas.

Declares an emergency effective immediately based on the need for highway funding due to increased infrastructure maintenance and construction costs.