Bill > SF0018

This bill provides a severance tax exemption for crude oil and natural gas produced through enhanced oil recovery (EOR) techniques using Wyoming-sourced carbon dioxide. Specifically, the bill exempts producers from one-half of the severance tax on production from enhanced oil and gas recovery projects that utilize carbon capture, utilization, and storage technology. To qualify, companies must apply for the exemption and ensure the carbon dioxide used in the recovery process originates within Wyoming. The bill defines enhanced oil and gas recovery as technologies that go beyond traditional primary and secondary recovery methods to optimize oil and gas resource development. The Wyoming Department of Revenue will oversee the exemption process, potentially consulting with the public service commission and oil and gas conservation commission to verify project qualifications. The department is required to submit an annual report to legislative committees detailing the exemption's usage and revenue impacts. This tax incentive aims to encourage advanced oil recovery techniques and carbon dioxide utilization within the state, with the exemption set to take effect on July 1, 2025.

Budget and Finance, Business and Industry

Minerals, Business and Economic Development (J)

https://www.wyoleg.gov/Legislation/2025/SF0018