HLS 14RS-1471 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2014
HOUSE BILL NO. 713
BY REPRESENTATIVE GREENE
TAX/SEVERANCE TAX: Provides that severance taxes do not have to be paid during the
period of a suspension or exemption from severance tax when the well operator
holds a certificate of good standing
AN ACT1
To amend and reenact R.S. 47:633(9)(d)(v) and to enact R.S. 633(7)(c)(iii)(cc), relative to2
severance tax; to provide with respect to the payment of severance tax by certain3
well operators; to provide for certain requirements; to provide for an effective date;4
and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 47:633(9)(d)(v) is hereby amended and reenacted and R.S.7
633(7)(c)(iii)(cc) is hereby enacted to read as follows: 8
ยง633. Rates of tax9
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(7) 11
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(c)13
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(iii) 15
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(cc) Severance tax shall not be required to be paid for the period of17
suspension listed in this Subsection when the operator of the well for which the18
exemption is sought holds a certificate of good standing issued by the Department19 HLS 14RS-1471 ORIGINAL
HB NO. 713
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are additions.
of Revenue and the Department of Natural Resources and the well has been1
determined by the Department of Natural Resources to qualify as a "horizontally2
drilled well" prior to the well beginning production.3
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(9)5
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(d)7
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(v) Production of natural gas, gas condensate, and oil from any well drilled9
to a true vertical depth of more than fifteen thousand feet, where production10
commences after July 31, 1994, shall be exempt from severance tax, from the date11
production begins, for twenty-four months or until payout of the well cost, whichever12
comes first. Severance tax shall not be required to be paid for this period of13
exemption when the operator of the well for which the exemption is sought, holds14
a certificate of good standing issued by the Department of Revenue and Department15
of Natural Resources and the well has been determined by the Department of Natural16
Resources to be drilled to a true vertical depth of more than fifteen thousand feet17
prior to the well beginning production.18
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Section 2. This Act shall become effective upon signature by the governor or, if not20
signed by the governor, upon expiration of the time for bills to become law without signature21
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If22
vetoed by the governor and subsequently approved by the legislature, this Act shall become23
effective on the day following such approval.24 HLS 14RS-1471 ORIGINAL
HB NO. 713
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Greene HB No. 713
Abstract: Provides that severance taxes do not have to be paid during the period of a
suspension or exemption from severance tax when the well operator holds a
certificate of good standing issued by the Dept. of Revenue (DOR) and Dept. of
Natural Resources (DNR).
Present law provides for the levy of a tax for natural resources severed from the soil or water
predicated on the quantity of the value of the products or resources severed. The rate of the
tax varies based on the natural resource.
Present law provides for a suspension on the collection of severance taxes for 24 months or
until payout of the well cost is achieved, whichever comes first, on any horizontally drilled
well or any horizontally drilled well recompletion well from which production after July 1,
1994. Payout of the well cost shall be the cost of completing the well to commencement of
productions determined by the Dept. of Natural Resources (DNR).
Proposed law retains present law but specifies that the severance tax shall not be required
to be paid during the period of suspension of the severance tax when the well operator holds
a certificate of good standing issued by the Dept. of Revenue (DOR) and DNR and the well
has been determined by DNR to qualify as a "horizontally drilled well" prior to beginning
production.
Present law authorizes an exemption from severance tax for 24 months or until payout of the
well, which ever comes first, for production of natural gas, gas condensate, and oil from any
well drilled to a true vertical depth of more than 15,000 feet, where production commences
after July 31, 1994.
Proposed law retains present law but specifies that the severance tax shall not be required
to be paid during the exemption period when the well operator holds a certificate of good
standing issued by the DOR and DNR and the well has been determined by DNR to be
drilled to a true vertical depth of more than 15,000 feet prior to the well beginning
production.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:633(9)(d)(v); Adds R.S. 633(7)(c)(iii)(cc))