HB 1427 Summary

• Establishes a new definition of "restimulation well" as a previously completed oil or gas well treated with pressurized fluid to enhance production, with exclusions for wells with less than 60 months of production, those producing over 125 barrels per day, wells in recovery projects, or wells without production records.

• Creates a reduced oil extraction tax rate of 2 percent on production from certified restimulation wells for the first 75,000 barrels or 18 months of production, whichever occurs first, for wells certified after August 1, 2023.

• Excludes restimulation wells located on tribal reservations or trust properties from the tax reduction unless a tribe makes an irrevocable written election to opt-in to the reduced rate.

• Requires industrial commission certification of restimulation wells to be submitted to the tax commissioner within six months after first oil production to receive the tax rate reduction.

• Effective for taxable production beginning after June 30, 2023.