86R9569 SMT-F
By: Bailes H.B. No. 3865
A BILL TO BE ENTITLED
AN ACT
relating to calculation of daily production for purposes of the oil
and gas production tax credits for low-producing wells and leases.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 201.059(a)(3), Tax Code, is amended to
read as follows:
(3) "Qualifying low-producing well" means a gas well
whose production during a three-month period is no more than 90 mcf
per day, excluding gas flared pursuant to the rules of the
commission. For purposes of qualifying a gas well, production per
well per day is determined by computing the average daily
production from the well using the greater of the monthly
production from the well as reported in the monthly well production
reports [report] made to the commission and the monthly production
from the well as reported in the producer's reports made to the
comptroller under Section 201.203, including any amendments to
those reports.
SECTION 2. Section 202.058(b), Tax Code, is amended to read
as follows:
(b) For purposes of qualifying a lease, production per well
per day is determined by computing the average daily per well
production from the lease using the greater of the monthly
production from the well as reported in the monthly lease
production reports [report] made to the commission and the monthly
production from the well as reported in the producer's reports made
to the comptroller under Section 202.201, including any amendments
to those reports. For purposes of qualifying a lease, production
per well per day is measured by dividing the sum of lease production
during the three-month period by the sum of the number of well-days,
where a well-day is one well producing for one day. The operator of
a lease that is eligible for a credit under this section only on the
basis of Subsection (a)(2)(B) must pay to the comptroller a filing
fee of $100 before the comptroller may authorize the credit.
SECTION 3. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 4. This Act takes effect September 1, 2019.