West Virginia SB706 modifies severance tax rates on newly drilled oil and natural gas wells.

West Virginia SB706 modifies the severance tax rates on newly drilled oil and natural gas wells. The bill sets a three percent tax rate for wells drilled and completed after June 30, 2026, and a two and five tenths percent tax rate for wells producing between one-half barrel and 10 barrels of oil per day or 5,000 to 60,000 cubic feet of natural gas per day. The tax applies to all persons severing gas or oil in the state and is in addition to all other taxes imposed by law. The bill also provides exemptions for certain natural gas and oil production.

West Virginia SB706 modifies severance tax rates on newly drilled oil and natural gas wells.

West Virginia SB706 modifies the severance tax rates on newly drilled oil and natural gas wells. The bill sets a three percent tax rate for wells drilled and completed after June 30, 2026, and a two and five tenths percent tax rate for wells producing between one-half barrel and 10 barrels of oil per day or 5,000 to 60,000 cubic feet of natural gas per day. The tax applies to all persons severing gas or oil in the state and is in addition to all other taxes imposed by law. The bill also provides exemptions for certain natural gas and oil production.