House Bill No. by Representative Geymann amends R.S. 47:633(7)(d) to provide a severance tax exemption for oil and gas produced from horizontally drilled wells. The bill specifies that the exemption for oil will extend for a period of twenty-four months or until the payout of the well cost is achieved, whichever comes first. Additionally, it introduces a new exemption for gas produced from wells completed before July 1, 2025, which will also last for twenty-four months or until payout is achieved. For gas produced from wells completed on or after July 1, 2025, the exemption will be limited to eighteen months or until payout.

The bill clarifies the definitions of "horizontal drilling" and "horizontal recompletion" and establishes that the payout of well costs will be determined by the Department of Energy and Natural Resources. The provisions of this Act will apply to taxable periods beginning on or after July 1, 2025, and it will become effective on that date, or the day following legislative approval if vetoed by the governor.

Statutes affected:
HB495 Original: 47:633(7)
HB495 Engrossed: 47:633(7)
HB495 Enrolled: 47:633(7)
HB495 Act 284: 47:633(7)