Bill > HB2129

This bill repeals the expiration clause for the unconventional gas well fee, meaning that fee will no longer automatically end. It then establishes a new natural gas severance tax, which is a tax levied on producers for each unconventional gas well. This new tax will be calculated based on the market value of the natural gas severed, with a base rate of 9% and an additional rate that can increase based on the amount of natural gas exported from the United States, ranging from 0.5% to 2%. Certain wells, such as stripper wells (those producing less than 90 units of natural gas per day), natural gas used by lessors for their own consumption, and natural gas from storage fields, are exempt from this new tax. The bill also allows for credits against this new tax for unconventional gas well fees already paid. It outlines various provisions for registration, tax assessment, penalties for non-compliance, recordkeeping, and the administration of the tax by the Department of Revenue, with penalties for evasion and criminal acts. Importantly, the bill prohibits producers from making this new tax the obligation of landowners or lessors and declares any agreements to the contrary to be void.

Agriculture and Natural Resources

https://www.palegis.us/legislation/bills/2025/hb2129