WV SB706

Reduces the severance tax rate from 5% to 3% on natural gas and oil produced from wells drilled and completed after June 30, 2026

The reduced 3% tax rate applies for 24 consecutive production months from the date of first sale from each qualifying new well

Applies to high-producing wells (those averaging over 60,000 cubic feet of natural gas per day or over 10 barrels of oil per day)

Maintains existing exemptions for low-producing wells, free gas provided to surface owners, and wells returned to production after five years of inactivity

The reduced rate is a temporary incentive; after the 24-month period, wells return to the standard 5% severance tax rate