Texas SB782 provides a severance tax exemption for oil and gas from restimulation wells, with a civil penalty for misuse.

Texas SB782 amends the Tax Code to create a severance tax exemption for oil and gas produced from certain restimulation wells. A qualifying well must have been in production for at least 60 months before restimulation and cannot be part of an enhanced oil recovery project or be uncompleted without production records. Hydrocarbons from these wells are exempt from severance taxes for up to 36 months post-restimulation or until cumulative exempted taxes and credits reach $750,000. Operators can apply for a tax credit if taxes were paid during the exemption period.

Texas SB782 provides a severance tax exemption for oil and gas from restimulation wells, with a civil penalty for misuse.

Texas SB782 amends the Tax Code to create a severance tax exemption for oil and gas produced from certain restimulation wells. A qualifying well must have been in production for at least 60 months before restimulation and cannot be part of an enhanced oil recovery project or be uncompleted without production records. Hydrocarbons from these wells are exempt from severance taxes for up to 36 months post-restimulation or until cumulative exempted taxes and credits reach $750,000. Operators can apply for a tax credit if taxes were paid during the exemption period.