Texas Legislative Update

TX HB3717 was filed on March 7, 2019.  This Bill relates to an oil and gas production tax credit for oil and gas producers that provide treated produced water to aquifer storage and recovery project operators.  In determining the amount of the credit, the total number of barrels of produced water is multiplied by the monthly average closing price per barrel of West Texas Intermediate crude oil, multiplied by 2.3% as applicable. The total amount of credits claimed by all producers in each fiscal year may not exceed $25,000,000.   Any remaining unused credit balance from the first year of the fiscal biennium may be carried over to the second year of the biennium.  This Bill is very similar to HB3067 previously reported, and SB1999. 

 

TX SB1999 was filed on March 7, 2019.  This Bill relates to an oil and gas production tax credit for oil and gas producers that provide treated produced water to aquifer storage and recovery project operators.  In determining the amount of the credit, the total number of barrels of produced water is multiplied by the monthly average closing price per barrel of West Texas Intermediate crude oil, multiplied by 2.3% as applicable. The total amount of credits claimed by all producers in each fiscal year may not exceed $25,000,000.   Any remaining unused credit balance from the first year of the fiscal biennium may be carried over to the second year of the biennium. This Bill is very similar to HB3067 previously reported, and HB3717. 

 

TX HB3865 was filed on March 7, 2019.  This Bill relates to the calculation of daily production for purposes of the oil and gas production tax credits for low-producing wells and leases.  This Bill relates to the calculation of daily production for low-producing wells and leases. Production per well per day is determined by computing the average daily production from the well using the greater of the monthly production from the well as reported in the monthly well production reports made to the commission, and the monthly production from the well as reported in the producer’s reports made to the comptroller including any amendments to those reports.  If successful it will be effective September 1.  This Bill is identical to SB925 as reported earlier.