Signed by Governor Greg Abbott

Vote Smart's Synopsis:

Vote to amend and pass a bill that authorizes tax exemptions for companies that use otherwise wasted gas.

Highlights:

• Exempts certain gas wells from severance tax if the gas is consumed near the well and the well meets other criteria (Sec. 1).

• Establishes that gas produced from a well that is consumed within 1000 feet of the qualifying well is not subject to the tax exemption offered in this act (Sec. 1). 

• Establishes that an application for these exemptions must meet the following criteria (Sec. 1):

• Proves that demand will not be more than supply; 

• Submitted jointly by the pipeline operator and and well operator;

• Certifies that the commission authorized gas from the pipeline to be flared for 30 days in the prior year; 

• Specifies that the commission can ask for any information it determines as relevant to describing whether the well fits the requirement for the tax exemptions (Sec. 1). 

• Specifies that a well must use all available pipeline takeaway capacity before it is available for exemptions (Sec. 1). 

• Specifies that to qualify for tax exemptions the person responsible for ;paying the tax must apply annually to the comptroller for the exemption (Sec. 1). 

• Requires the owner of the well to submit immediately if a well no longer qualifies for the exemptions (Sec. 1). 

Full Bill Text