Committee Approves Severance Tax Break For Closed Wells
A bill that would give a severance tax exemption to encourage oil and gas producers to re-open shut down wells will go to the House Floor.
The bill by Senator Eli Bebout would be used to try and make Wyoming oil and gas more competitive with other states. Bebout said the goal is to encourage more production and he argued that it actually will raise more revenue for the state. The bill passed the House Revenue Committee 5-4. Chairman Dan Zwonitzer has some concerns about the bill, but he thinks it could work.
"The bill in its current form I'm much more favorable to now if we can keep some of these lower producing wells from going offline and keeping some of that tax revenue and jobs in these communities. I think that's what is pushing my favorability right now," said Zwonitzer.
The bill as amended now impacts wells that have been shut in for 18 months. It now goes to the House floor for further debate.