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MS HB1698

Bill

Official Source

Status

Passed

4/23/2013

Primary Sponsor

Angela Cockerham

Click for details

Origin

House of Representatives

2013 Regular Session

AI Summary

  • Reduces severance tax on oil and natural gas from horizontally drilled wells from 6% to 1.3% for 30 months from first sale of production, or until the well cost is paid off, whichever occurs first
  • Defines "horizontally drilled well" as having borehole deviation of at least 80 degrees from vertical with at least 1,000 feet of lateral penetration through productive reservoirs
  • Directs 100% of the reduced tax revenue from qualifying horizontal wells to the county where the oil or gas was produced, rather than the standard state-county split
  • Requires operators to apply to the State Oil and Gas Board for the reduced rate and submit semiannual payout status affidavits
  • Authorizes counties to enter into road maintenance agreements with qualifying taxpayers to repair county roads damaged by drilling activity
  • The reduced tax rate provision expires July 1, 2018, though wells that begin production before that date remain eligible for the full 30-month period

Legislative Description

Severance tax; reduce for 24 months for oil and gas produced from and after July 1, 2013, from horizontally drilled wells.

Last Action

Approved by Governor

4/23/2013

Committee Referrals

Energy3/4/2013
Energy2/26/2013

Full Bill Text

No bill text available