HLS 23RS-1347 ORIGINAL
2023 Regular Session
HOUSE BILL NO. 634
BY REPRESENTATIVE MCFARLAND
TAX/SEVERANCE TAX: Provides relative to a severance tax exemption for deep-well oil
and gas production
1 AN ACT
2To amend and reenact R.S. 47:633(9)(d)(v), relative to severance tax; to provide with
3 respect to a severance tax exemption for production of oil and gas from wells drilled
4 to a certain depth; to provide for eligibility for the exemption; to provide with respect
5 to certain applications for well status determination filed with the Department of
6 Natural Resources; to provide for the application of certain laws; to provide an
7 effective date; and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 47:633(9)(d)(v) is hereby amended and reenacted to read as follows:
10 ยง633. Rates of tax
11 The taxes on natural resources severed from the soil or water levied by R.S.
12 47:631 shall be predicated on the quantity or value of the products or resources
13 severed and shall be paid at the following rates:
14 * * *
15 (9)
16 * * *
17 (d)
18 * * *
19 (v) Production of natural gas, gas condensate, and oil from any well drilled
20 to a true vertical depth of more than fifteen thousand feet, where production
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HB NO. 634
1 commences after July 31, 1994, shall be exempt from severance tax, from the date
2 production begins, for twenty-four months or until payout of the well cost, whichever
3 comes first. For the purpose of this exemption, the date production begins may be
4 a date subsequent to the well completion date.
5 * * *
6 Section 2. The provisions of this Act shall apply to each Application for Well Status
7Determination (Deep Well) filed with the office of conservation of the Department of
8Natural Resources on or after January 1, 2023. Each applicant who filed such an application
9on or after January 1, 2023, and prior to the effective date of this Act shall be permitted to
10amend its application to conform with the provisions of this Act.
11 Section 3. The provisions of this Act are procedural and interpretive.
12 Section 4. This Act shall become effective on July 1, 2023; if vetoed by the governor
13and subsequently approved by the legislature, this Act shall become effective on July 1,
142023, or on the day following such approval by the legislature, whichever is later.
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 634 Original 2023 Regular Session McFarland
Abstract: Provides for eligibility for a severance tax exemption for production of natural
gas, gas condensate, and oil from any well drilled to a depth of more than 15,000
feet.
Present law, pursuant to the authority of present constitution, levies severance taxes on all
natural resources severed from the soil or water, including all forms of timber, including
pulp woods, turpentine, and other forest products; minerals such as oil, gas, natural gasoline,
distillate, condensate, casinghead gasoline, sulphur, salt, coal, lignite, and ores; marble,
stone, sand, shells, and other natural deposits; and the salt content in brine.
Present law provides that production of natural gas, gas condensate, and oil from any well
drilled to a true vertical depth of more than 15,000 feet shall be exempt from severance tax,
from the date production begins, for 24 months or until payout of the well cost, whichever
comes first.
Proposed law retains present law and provides that for purposes of eligibility for the
exemption, the date production begins may be a date subsequent to the well completion date.
Proposed law stipulates that its provisions shall apply to each Application for Well Status
Determination (Deep Well) filed with the office of conservation of the Dept. of Natural
Resources on or after Jan. 1, 2023. Provides that each applicant who filed such an
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HB NO. 634
application on or after Jan. 1, 2023, and prior to the effective date of proposed law shall be
permitted to amend its application to conform with the provisions of proposed law.
Proposed law establishes that its provisions are procedural and interpretive.
Effective July 1, 2023.
(Amends R.S. 47:633(9)(d)(v))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.