Texas 2023 - 88th Regular

Texas House Bill HB591 Compare Versions

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Version 2 (New)

Old	New	Differences
1	1	H.B. No. 591
2	2
3	3
4	4	AN ACT
5	5	relating to an exemption from the severance tax for gas produced
6	6	from certain wells that is consumed near the well and would
7	7	otherwise have been lawfully vented or flared.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subchapter B, Chapter 201, Tax Code, is amended
10	10	by adding Section 201.061 to read as follows:
11	11	Sec. 201.061. EXEMPTION FOR GAS PRODUCED THAT WOULD
12	12	OTHERWISE HAVE BEEN VENTED OR FLARED. (a) In this section:
13	13	(1) "Commission" means the Railroad Commission of
14	14	Texas.
15	15	(2) "Qualifying well" means a well that:
16	16	(A) is connected to a pipeline on which pipeline
17	17	takeaway capacity is not expected to meet the demand for gas
18	18	produced from the well;
19	19	(B) is not connected to a pipeline and for which
20	20	connection to a pipeline is technically or commercially unfeasible
21	21	but is operated by a well operator who has contractually dedicated
22	22	the well, the gas produced from the well, or the land or lease on
23	23	which the well is located to a pipeline operator; or
24	24	(C) is not connected to a pipeline and is
25	25	operated by a well operator who has not contractually dedicated the
26	26	well, the gas produced from the well, or the land or lease on which
27	27	the well is located to a pipeline operator.
28	28	(3) "Well operator" means the person responsible for
29	29	the actual physical operation of an oil or gas well.
30	30	(b) Gas produced from a qualifying well that is consumed
31	31	within 1,000 feet of the qualifying well and would otherwise have
32	32	been lawfully vented or flared is not subject to the tax imposed by
33	33	this chapter.
34	34	(c) A well operator and a pipeline operator, as applicable,
35	35	may apply to the commission in the manner provided by Subsection
36	36	(d), (e), or (f), as applicable, for certification that a well is a
37	37	qualifying well.
38	38	(d) An application that relates to a well described by
39	39	Subsection (a)(2)(A) must:
40	40	(1) include an attestation that pipeline takeaway
41	41	capacity is not expected to meet the demand for gas produced from
42	42	the well;
43	43	(2) be submitted jointly by the well operator and the
44	44	pipeline operator; and
45	45	(3) certify that the commission authorized gas from
46	46	the well to be flared for at least 30 days during the year preceding
47	47	the year in which the application is filed.
48	48	(e) An application that relates to a well described by
49	49	Subsection (a)(2)(B) must:
50	50	(1) attest that:
51	51	(A) the well is not connected to a pipeline; and
52	52	(B) it is technically or commercially unfeasible
53	53	to connect the well to a pipeline;
54	54	(2) be submitted jointly by the well operator and the
55	55	pipeline operator; and
56	56	(3) certify that the commission authorized gas from
57	57	the well to be flared for at least 30 days during the year preceding
58	58	the year in which the application is filed.
59	59	(f) An application that relates to a well described by
60	60	Subsection (a)(2)(C) must:
61	61	(1) attest that the well:
62	62	(A) is not connected to a pipeline; and
63	63	(B) is operated by a well operator who has not
64	64	contractually dedicated the well, the gas produced from the well,
65	65	or the land or lease on which the well is located to a pipeline
66	66	operator;
67	67	(2) be submitted by the well operator; and
68	68	(3) certify that the commission authorized gas from
69	69	the well to be flared for at least 30 days during the year preceding
70	70	the year in which the application is filed.
71	71	(g) The commission may require an applicant described by
72	72	Subsection (c) to provide the commission with any information the
73	73	commission determines is relevant to determining whether a well is
74	74	a qualifying well. If the commission approves an application
75	75	submitted under Subsection (c), the commission shall issue a
76	76	certificate designating the well as a qualifying well. A
77	77	certificate issued under this subsection expires one year after the
78	78	date on which the commission issues the certificate.
79	79	(h) A well described by Subsection (a)(2)(A) for which the
80	80	commission issues a certificate under Subsection (g) must use all
81	81	available pipeline takeaway capacity before gas produced from the
82	82	well may receive an exemption under this section.
83	83	(i) To qualify for the exemption provided by this section,
84	84	the person responsible for paying the tax imposed by this chapter
85	85	must apply annually to the comptroller for the exemption. The
86	86	application must contain the certificate issued by the commission
87	87	under Subsection (g). The comptroller may require a person
88	88	applying for the exemption to provide any additional information
89	89	the comptroller determines is relevant to determining whether the
90	90	gas is eligible for the exemption.
91	91	(j) The commission, well operator, or pipeline operator
92	92	shall notify the comptroller in writing immediately if a well
93	93	certified under this section is no longer a qualifying well.
94	94	(k) The commission and the comptroller may adopt rules
95	95	necessary to implement and administer this section.
96	96	SECTION 2. The change in law made by this Act does not
97	97	affect tax liability accruing before the effective date of this
98	98	Act. That liability continues in effect as if this Act had not been
99	99	enacted, and the former law is continued in effect for the
100	100	collection of taxes due and for civil and criminal enforcement of
101	101	the liability for those taxes.
102	102	SECTION 3. This Act takes effect September 1, 2023.
103	103	______________________________ ______________________________
104	104	President of the Senate Speaker of the House
105	105	I certify that H.B. No. 591 was passed by the House on April
106	106	14, 2023, by the following vote: Yeas 141, Nays 1, 1 present, not
107	107	voting; and that the House concurred in Senate amendments to H.B.
108	108	No. 591 on May 15, 2023, by the following vote: Yeas 142, Nays 0, 1
109	109	present, not voting.
110	110	______________________________
111	111	Chief Clerk of the House
112	112	I certify that H.B. No. 591 was passed by the Senate, with
113	113	amendments, on May 10, 2023, by the following vote: Yeas 26, Nays
114	114	4.
115	115	______________________________
116	116	Secretary of the Senate
117	117	APPROVED: __________________
118	118	Date
119	119	__________________
120	120	Governor