News & Alerts
March 31, 2020 TAX RELIEF FOR WYOMING OIL AND GAS OPERATORS
WOGCC Commissioners, including Governor Gordon, held a special emergency telephonic hearing regarding Supervisor Watson’s proposal to reduce the conservation mill levy taxes assessed under Wyoming Statute 3-5-116(b) from .005 to .000. All WOGCC Commissioners and Governor Gordon voted in favor of temporarily reducing the Conservation tax to .000 effective April 1, 2020 to September 30, 2020. On October 1, 2020, the Conservation tax will immediately return to .005 unless the need for another Special Hearing requires addressing the situation again. Along with this reduction in tax, Operators will need to submit the required filing and reporting but will not need to have an original signature, nor mail in a hard copy of the report. Supervisor Watson stated that WOGCC Staff understands many people are working from home and are under Stay-at-Home orders and, therefore, during this six-month tax reduction the report will need to be submitted electronically but will not require a hard copy mailing or authentic signature.
Supervisor Watson indicated that
this is the first time since the WOGCC was given the authority to assess the
Conservation Tax (in 1959) that the tax has ever been moved to .000. The hope
is that this will not only help operators during this unprecedented time but will offer a sort of stimulus to operators
currently producing in Wyoming. Governor Gordon was very supportive of this
action and indicated that he understands that the oil and gas industry is
facing difficulties due to the COVID-19 pandemic and oil price wars. He stated he is available and willing to
work with the WOGCC
to do what is best for the industry and Wyoming.
This comes on the heels of Governor Gordon signing into law HB 243 on March 27th, 2020. HB 243 provides a reduction in state mineral taxes amidst certain price environments. The tax break would take effect July 1, 2020 if the 12-month rolling average of oil prices falls below $50/barrel or if the 12-month rolling average of natural gas falls below $2.95/thousand cubic feet. If such is the case, the severance tax would be reduced from 6% to 4%. Operators that qualify for the severance would see a 2% reduction for the first six months and then a 1% reduction in the six months following. A link to the bill that was approved by both chambers and signed by Governor Gordon can be found here: