Bill Text: TX SB925 | 2019-2020 | 86th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to calculation of daily production for purposes of the oil and gas production tax credits for low-producing wells and leases.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2019-05-20 - Effective on 9/1/19 [SB925 Detail]
Download: Texas-2019-SB925-Introduced.html
Bill Title: Relating to calculation of daily production for purposes of the oil and gas production tax credits for low-producing wells and leases.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2019-05-20 - Effective on 9/1/19 [SB925 Detail]
Download: Texas-2019-SB925-Introduced.html
86R9569 SMT-F | ||
By: Flores | S.B. No. 925 |
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relating to calculation of daily production for purposes of the oil | ||
and gas production tax credits for low-producing wells and leases. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 201.059(a)(3), Tax Code, is amended to | ||
read as follows: | ||
(3) "Qualifying low-producing well" means a gas well | ||
whose production during a three-month period is no more than 90 mcf | ||
per day, excluding gas flared pursuant to the rules of the | ||
commission. For purposes of qualifying a gas well, production per | ||
well per day is determined by computing the average daily | ||
production from the well using the greater of the monthly | ||
production from the well as reported in the monthly well production | ||
reports [ |
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from the well as reported in the producer's reports made to the | ||
comptroller under Section 201.203, including any amendments to | ||
those reports. | ||
SECTION 2. Section 202.058(b), Tax Code, is amended to read | ||
as follows: | ||
(b) For purposes of qualifying a lease, production per well | ||
per day is determined by computing the average daily per well | ||
production from the lease using the greater of the monthly | ||
production from the well as reported in the monthly lease | ||
production reports [ |
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production from the well as reported in the producer's reports made | ||
to the comptroller under Section 202.201, including any amendments | ||
to those reports. For purposes of qualifying a lease, production | ||
per well per day is measured by dividing the sum of lease production | ||
during the three-month period by the sum of the number of well-days, | ||
where a well-day is one well producing for one day. The operator of | ||
a lease that is eligible for a credit under this section only on the | ||
basis of Subsection (a)(2)(B) must pay to the comptroller a filing | ||
fee of $100 before the comptroller may authorize the credit. | ||
SECTION 3. The change in law made by this Act does not | ||
affect tax liability accruing before the effective date of this | ||
Act. That liability continues in effect as if this Act had not been | ||
enacted, and the former law is continued in effect for the | ||
collection of taxes due and for civil and criminal enforcement of | ||
the liability for those taxes. | ||
SECTION 4. This Act takes effect September 1, 2019. |