By: Rodriguez H.B. No. 4433
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from the severance tax for certain gas and
oil produced.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 202.056, Tax Code, is amended by
amending Subsections (c) and (d) and adding Subsection (d-1) to
read as follows:
(c) If the commission designates a three-year inactive well
under this section, it shall issue a certificate designating the
well as a three-year inactive well as defined by Subsection (a)(3)
of this section. The commission may not designate a three-year
inactive well under this section after February 29, 1996. If the
commission designates a two-year inactive well under this section,
it shall issue a certificate designating the well as a two-year
inactive well as defined by Subsection (a)(4) of this section. The
commission may not designate a two-year inactive well under this
section after February 28, 2020 [2010].
(d) An application for three-year inactive well
certification shall be made during the period of September 1, 1993,
through August 31, 1995, to qualify for the tax exemption under this
section. An application for two-year inactive well certification
shall be made during the period September 1, 1997, through August
31, 2019 [2009], to qualify for the tax exemption under this
section. Hydrocarbons sold after the date of certification are
eligible for the tax exemption.
(d-1) The comptroller shall certify the first date on which
the prices of oil and gas have been at or below the respective
prices described by Section 171.1011(s) for three continuous
months. The commission may issue a certificate under Subsection
(c) only if the application for certification is received by the
commission not later than the 90th day after the date the
comptroller makes the certification under this subsection.
SECTION 2. Subchapter B, Chapter 201, Tax Code, is amended
by adding Section 201.060 to read as follows:
Sec. 201.060. EXEMPTION FOR GAS INCIDENTALLY PRODUCED IN
PRODUCTION OF GEOTHERMAL ENERGY. Gas incidentally produced in the
production of geothermal energy is exempt from the severance tax
imposed by this chapter.
SECTION 3. Subchapter B, Chapter 202, Tax Code, is amended
by adding Section 202.062 to read as follows:
Sec. 202.062. EXEMPTION FOR OIL INCIDENTALLY PRODUCED IN
PRODUCTION OF GEOTHERMAL ENERGY. Oil incidentally produced in the
production of geothermal energy is exempt from the severance tax
imposed by this chapter.
SECTION 4. For purposes of making a certification under
Section 202.056(d-1), Tax Code, as added by this Act, the
comptroller may not consider the price of oil on dates before
October 1, 2009.
SECTION 5. Sections 201.060 and 202.062, Tax Code, as added
by this Act, apply only to gas or oil produced on or after the
effective date of this Act. Gas or oil produced before the
effective date of this Act is governed by the law in effect when the
gas or oil was produced, and the former law is continued in effect
for that purpose.
SECTION 6. This Act takes effect September 1, 2009.