2015 Wyoming Code
TITLE 39 - TAXATION AND REVENUE
CHAPTER 14 - MINE PRODUCT TAXES
ARTICLE 2 - OIL AND GAS
SECTION 39-14-205. - Exemptions.

39-14-205. Exemptions.

(a) Stripper production is exempt from the severance taxes imposed by W.S. 39-14-204(a)(iii).

(b) Crude oil extracted from collection wells prior to January 1, 1999, is exempt from the severance taxes imposed by W.S. 39-14-204(a)(ii), (iii) and (iv).

(c) Tertiary production resulting from projects certified by the Wyoming oil and gas conservation commission after March 31, 2003, and before March 31, 2008, is exempt from the severance taxes imposed by W.S. 39-14-204(a)(iii) for a period of five (5) years from date of first tertiary production provided no exemption shall be allowed under this subsection in those months when the price received by the producer for the tertiary production equals or exceeds twenty-seven dollars and fifty cents ($27.50) per barrel. A taxpayer claiming a tax reduction under this subsection is prohibited from claiming a tax reduction provided by subsection (f) or (g) of this section.

(d) In the case of tertiary production of crude oil resulting from injection of carbon dioxide gas, all Wyoming severance taxes paid on the carbon dioxide gas injected shall be deducted from and allowed as a credit against the severance taxes imposed on the oil produced by the injection.

(e) Crude oil or natural gas produced from a wildcat well drilled and completed on or after January 1, 1991, and on or before December 31, 1994, is exempt from the severance taxes imposed by W.S. 39-14-204(a)(iii) and (iv) for a period of four (4) years commencing the date of first production from the well.

(f) Crude oil and natural gas produced from wells drilled between July 1, 1993, and March 31, 2003, except the production from collection wells, is exempt from the severance taxes imposed by W.S. 39-14-204(a)(iii) and (iv) for the first twenty-four (24) months of production on oil production up to sixty (60) barrels per day or its equivalency in gas production, which for purposes of this subsection shall be six (6) MCF gas production for one (1) barrel oil production, or until the price received by the producer for the new production is equal to or exceeds twenty-two dollars ($22.00) per barrel of oil or two dollars and seventy-five cents ($2.75) per MCF of natural gas for the preceding six (6) month period of time. Provided however, that a taxpayer claiming a tax reduction under this subsection is prohibited from claiming a tax reduction provided by subsection (c) or (e) of this section. Nothing in this subsection shall apply to natural gas produced from any well completed for production at a depth of less than two thousand feet (2,000) from the earth s surface if drilling activities commenced on or after April 1, 2000.

(g) Incremental crude oil or natural gas production resulting from a workover or recompletion of an oil or gas well between January 1, 1997, and March 31, 2001, shall be exempt from the severance taxes imposed by W.S. 39-14-204(a)(iii) and (iv) for a period of twenty-four (24) months immediately following the workover or recompletion. Rules, definitions and regulations to implement the provisions of this subsection shall be promulgated by the Wyoming oil and gas conservation commission in consultation with the mineral tax division of the department of revenue. Provided, however that a taxpayer claiming a tax reduction under this subsection is prohibited from claiming a tax reduction provided by subsection (c) or (e) of this section.

(h) Crude oil produced from previously shut-in wells is exempt from the severance taxes imposed by W.S. 39-14-204(a)(ii), (iii) and (iv) for the first sixty (60) months of renewed production or until the average price received by the producer for the renewed production is equal to or exceeds twenty-five dollars ($25.00) per barrel of oil for the preceding six (6) months, whichever sooner occurs.

(j) Natural gas which is vented or flared under the authority of the Wyoming oil and gas conservation commission and natural gas which is reinjected or consumed prior to sale for the purpose of maintaining, stimulating, treating, transporting or producing crude oil or natural gas on the same lease or unit from which it was produced has no value and is exempt from taxation.

(k) A taxpayer who is liable for payment of taxes under W.S. 39-14-204(a)(i), (ii) and (iii) on the production of natural gas is entitled to a credit against those taxes in an amount equal to fifty percent (50%) of the amount certified by the gas research review committee under W.S. 39-14-202(a)(iv) through (x) as a qualifying investment by that taxpayer in a research project. Credits under this section shall first be applied to tax liability under W.S. 39-14-204(a)(iii) and then to the tax liability under W.S. 39-14-204(a)(ii).