Bill Text: TX HB591 | 2023-2024 | 88th Legislature | Enrolled
Bill Title: Relating to an exemption from the severance tax for gas produced from certain wells that is consumed near the well and would otherwise have been lawfully vented or flared.
Spectrum: Slight Partisan Bill (Democrat 4-2)
Status: (Passed) 2023-06-02 - Effective on 9/1/23 [HB591 Detail]
Download: Texas-2023-HB591-Enrolled.html
H.B. No. 591 |
|
||
relating to an exemption from the severance tax for gas produced | ||
from certain wells that is consumed near the well and would | ||
otherwise have been lawfully vented or flared. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter B, Chapter 201, Tax Code, is amended | ||
by adding Section 201.061 to read as follows: | ||
Sec. 201.061. EXEMPTION FOR GAS PRODUCED THAT WOULD | ||
OTHERWISE HAVE BEEN VENTED OR FLARED. (a) In this section: | ||
(1) "Commission" means the Railroad Commission of | ||
Texas. | ||
(2) "Qualifying well" means a well that: | ||
(A) is connected to a pipeline on which pipeline | ||
takeaway capacity is not expected to meet the demand for gas | ||
produced from the well; | ||
(B) is not connected to a pipeline and for which | ||
connection to a pipeline is technically or commercially unfeasible | ||
but is operated by a well operator who has contractually dedicated | ||
the well, the gas produced from the well, or the land or lease on | ||
which the well is located to a pipeline operator; or | ||
(C) is not connected to a pipeline and is | ||
operated by a well operator who has not contractually dedicated the | ||
well, the gas produced from the well, or the land or lease on which | ||
the well is located to a pipeline operator. | ||
(3) "Well operator" means the person responsible for | ||
the actual physical operation of an oil or gas well. | ||
(b) Gas produced from a qualifying well that is consumed | ||
within 1,000 feet of the qualifying well and would otherwise have | ||
been lawfully vented or flared is not subject to the tax imposed by | ||
this chapter. | ||
(c) A well operator and a pipeline operator, as applicable, | ||
may apply to the commission in the manner provided by Subsection | ||
(d), (e), or (f), as applicable, for certification that a well is a | ||
qualifying well. | ||
(d) An application that relates to a well described by | ||
Subsection (a)(2)(A) must: | ||
(1) include an attestation that pipeline takeaway | ||
capacity is not expected to meet the demand for gas produced from | ||
the well; | ||
(2) be submitted jointly by the well operator and the | ||
pipeline operator; and | ||
(3) certify that the commission authorized gas from | ||
the well to be flared for at least 30 days during the year preceding | ||
the year in which the application is filed. | ||
(e) An application that relates to a well described by | ||
Subsection (a)(2)(B) must: | ||
(1) attest that: | ||
(A) the well is not connected to a pipeline; and | ||
(B) it is technically or commercially unfeasible | ||
to connect the well to a pipeline; | ||
(2) be submitted jointly by the well operator and the | ||
pipeline operator; and | ||
(3) certify that the commission authorized gas from | ||
the well to be flared for at least 30 days during the year preceding | ||
the year in which the application is filed. | ||
(f) An application that relates to a well described by | ||
Subsection (a)(2)(C) must: | ||
(1) attest that the well: | ||
(A) is not connected to a pipeline; and | ||
(B) is operated by a well operator who has not | ||
contractually dedicated the well, the gas produced from the well, | ||
or the land or lease on which the well is located to a pipeline | ||
operator; | ||
(2) be submitted by the well operator; and | ||
(3) certify that the commission authorized gas from | ||
the well to be flared for at least 30 days during the year preceding | ||
the year in which the application is filed. | ||
(g) The commission may require an applicant described by | ||
Subsection (c) to provide the commission with any information the | ||
commission determines is relevant to determining whether a well is | ||
a qualifying well. If the commission approves an application | ||
submitted under Subsection (c), the commission shall issue a | ||
certificate designating the well as a qualifying well. A | ||
certificate issued under this subsection expires one year after the | ||
date on which the commission issues the certificate. | ||
(h) A well described by Subsection (a)(2)(A) for which the | ||
commission issues a certificate under Subsection (g) must use all | ||
available pipeline takeaway capacity before gas produced from the | ||
well may receive an exemption under this section. | ||
(i) To qualify for the exemption provided by this section, | ||
the person responsible for paying the tax imposed by this chapter | ||
must apply annually to the comptroller for the exemption. The | ||
application must contain the certificate issued by the commission | ||
under Subsection (g). The comptroller may require a person | ||
applying for the exemption to provide any additional information | ||
the comptroller determines is relevant to determining whether the | ||
gas is eligible for the exemption. | ||
(j) The commission, well operator, or pipeline operator | ||
shall notify the comptroller in writing immediately if a well | ||
certified under this section is no longer a qualifying well. | ||
(k) The commission and the comptroller may adopt rules | ||
necessary to implement and administer this section. | ||
SECTION 2. 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 3. This Act takes effect September 1, 2023. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 591 was passed by the House on April | ||
14, 2023, by the following vote: Yeas 141, Nays 1, 1 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 591 on May 15, 2023, by the following vote: Yeas 142, Nays 0, 1 | ||
present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 591 was passed by the Senate, with | ||
amendments, on May 10, 2023, by the following vote: Yeas 26, Nays | ||
4. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |