Texas HB3159 provides a severance tax exemption for oil and gas produced from certain previously inactive restimulation wells, with a civil penalty.

Texas HB3159 amends the Tax Code to introduce a severance tax exemption for oil and gas produced from qualifying restimulation wells. A "qualifying well" is defined as a restimulation well certified by the Railroad Commission of Texas. Hydrocarbons produced from these wells are exempt from severance taxes until the earlier of 36 months after the well first produces hydrocarbons following restimulation or when the cumulative amount of exempted taxes and credits equals the lesser of restimulation costs or $750,000.

Texas HB3159 provides a severance tax exemption for oil and gas produced from certain previously inactive restimulation wells, with a civil penalty.

Texas HB3159 amends the Tax Code to introduce a severance tax exemption for oil and gas produced from qualifying restimulation wells. A "qualifying well" is defined as a restimulation well certified by the Railroad Commission of Texas. Hydrocarbons produced from these wells are exempt from severance taxes until the earlier of 36 months after the well first produces hydrocarbons following restimulation or when the cumulative amount of exempted taxes and credits equals the lesser of restimulation costs or $750,000.