Wyoming’s Joint Minerals and the Business & Economic Development Committee voted in favor of sponsoring a bill that would encourage new oil and gas production in the state.
With the goal of spurring additional mineral production and capital investment to recover from economic collapse and energy markets, Wyoming’s legislature advanced a bill that would reduce the state’s mineral tax rate by half for a six month period when oil prices fall below $38 to $45 per barrel and gas prices fall below $2.95 per thousand cubic feet as a 30-day rolling average.
The tax rate reduction from the current 6% to 3% would apply to oil or gas produced from new wells or previously shut in wells revived by operators. This tax reduction would only apply for six months, or until prices increase; the ultimate goal is to encourage producers to stay in/choose Wyoming.
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