Vote Smart's Synopsis:

Vote to pass a bill that extends the current triggered oil extraction tax rate for horizontal wells through July 1, 2019.

Highlights:

• Extends the date to qualify for the reduced tax rate of 2 percent of the gross value at the well of the oil extracted to July 1, 2019 (Sec. 1).

• Specifies that the triggered oil extraction tax rate becomes effective on the first day of the month following a month in which the average price of a barrel of crude oil is less than $55, and the tax rate becomes ineffective following a month in which the average price of a barrel of crude oil exceeds $70 (Sec. 1).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that extends the current triggered oil extraction tax rate for horizontal wells through July 1, 2017.

Highlights:

• Extends the date to qualify for the current "triggered oil extraction tax rate" reduction for a new horizontal well through June 1, 2017 (Sec. 1).

• Specifies that the triggered oil extraction tax rate is 2 percent of the gross value produced at the horizontal well in which the oil is extracted, with the following stipulations (Sec. 1): 
• The tax rate only applies to the first 75,000 barrels or the first $4,500,000 of gross value produced at the well, whichever is less; and  
• The tax rate only applies to oil produced during the first 18 months of a newly drilled  horizontal well.

• Specifies that the triggered oil extraction tax rate becomes effective following a month in which the average price of a barrel of crude oil is less than $55, and the tax rate becomes ineffective following a month in which the average price of a barrel of crude oil exceeds $70 (Sec. 1).

Full Bill Text