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)]
HB 461 Engrossed 2017 Regular Session Bishop
Abstract: Re-establishes a severance tax exemption for production from a certified inactive oil and
gas well for a 50% tax exemption for 10 years, and establishes an exemption for production
from a certified orphan well for a 75% exemption for 10 years, both exemptions would be
effective from July 1, 2018, through June 30, 2022.
Present law authorizes a five year exemption from severance tax for production from oil and gas
wells that are returned to service after being inactive for two or more years or having thirty days or
less of production during the past two years (inactive well), effective July 1, 2006, through June 30,
2010.
Proposed law changes present law by changing the extent and duration of the exemption for
production from an inactive well from five years at 100% to 10 years at 50% and by establishing a
new effective period beginning July 1, 2018, through June 30, 2022.
Proposed law changes present law by establishing an exemption for production from a well with
orphan well designation for at least 60 months, which exemption provides a 50% rate reduction for
a duration of 10 years, effective for the period from July 1, 2018, through June 30, 2022.
(Amends R.S. 47:633(7)(c)(iv))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Add a limit on the duration of the exemptions, July 1, 2018, through June 30, 2022.
2. Add technical changes regarding administration.