This bill amends R.S. 47:633(9)(d)(v) to provide a severance tax exemption for the production of oil and gas from wells drilled to a true vertical depth of more than fifteen thousand feet. The exemption applies for twenty-four months from the date commercial production begins or until the well costs are paid off, whichever occurs first. The bill clarifies that the date of commercial production is defined as the first day the well produces into permanent production equipment, and it specifies that preliminary tests or related production activities do not count as the start of commercial production.

Additionally, the bill stipulates that the new provisions will apply to applications for well status determination filed with the Department of Natural Resources on or after January 1, 2023. Applicants who filed such applications during the specified timeframe will have the opportunity to amend their applications to align with the new regulations. The bill is procedural and interpretive in nature and will take effect upon the governor's signature or after the designated period for bills to become law without a signature.

Statutes affected:
HB634 Original: 47:633(9)
HB634 Engrossed: 47:633(9)
HB634 Reengrossed: 47:633(9)
HB634 Enrolled: 47:633(9)
HB634 Act : 47:633(9)