MS SB2697

Extends the repeal date for reduced severance tax rates on oil and natural gas produced from horizontally drilled wells and horizontally drilled recompletion wells from July 1, 2023 to July 1, 2027.

Maintains the 1.3% tax rate on oil and gas from qualifying horizontally drilled wells for 30 months from first sale or until well cost payout is achieved, whichever occurs first, then reverts to standard 6% rate.

Allows wells that begin production before July 1, 2027 to continue receiving the reduced 1.3% tax rate for their full qualifying period even after the 2027 repeal effective date.

Requires operators to apply to the State Oil and Gas Board for the reduced rate and provide semiannual payout status affidavits for each horizontally drilled well.

Becomes effective July 1, 2023.