MOD
HB 107
REDUCED TAX RATE FOR CERTAIN OIL & GAS WELLS
- Legislative URL:
- HB 107 on nmlegis.gov
- Emergency Clause:
- No
- Germane:
- N/A
- Location:
- HWMC
- Action:
- HPREF [1] HEENC/HWMC-HEENC [4] DP-HWMC API.
- Issue(s):
- Energy
Related Legislators
- Bill Sponsor:
- James Strickler
Related Documents
- Downloads:
-
Introduced
HEENC Committee Report
Fiscal Impact Report
Summary
This bill reduces by up to 50% the severance and privilege taxes on natural gas and oil from a stripper well property, if the value of natural gas in the preceding calendar was between $1.15 and $3.50 per thousand cubic feet, and if the value of oil was between $15.00 and $65.00 per barrel.
The same reductions currently apply if the value of natural gas is $1.15 or less and if the value of oil is $15.00 or less.
A potential effect of this bill is that it may stimulate additional production of natural gas and oil from existing low-volume wells that may otherwise be nearing the end of their productive life.