2023 Wyoming Statutes › Title 39 - Taxation and Revenue › Chapter 14 - Mine Product Taxes › Article 2 - Oil and Gas › Section 39-14-205 - Exemptions.

39-14-205. Exemptions.
(a) Stripper production is exempt from the severance taxes imposed by W.S. 39-14-204(a)(iii).
(b) Repealed by Laws 2016, ch. 16, 2.
(c) Repealed by Laws 2016, ch. 16, 2.
(d) In the case of tertiary production of crude oil resulting from injection of carbon dioxide gas, all Wyoming severance taxes paid on the carbon dioxide gas injected shall be deducted from and allowed as a credit against the severance taxes imposed on the oil produced by the injection.
(e) Repealed by Laws 2016, ch. 16, 2.
(f) Repealed by Laws 2016, ch. 16, 2.
(g) Repealed by Laws 2016, ch. 16, 2.
(h) Crude oil produced from previously shut-in wells is exempt from the severance taxes imposed by W.S. 39-14-204(a)(ii), (iii) and (iv) for the first sixty (60) months of renewed production or until the average price received by the producer for the renewed production is equal to or exceeds twenty-five dollars ($25.00) per barrel of oil for the preceding six (6) months, whichever sooner occurs.
(j) Natural gas which is vented or flared under the authority of the Wyoming oil and gas conservation commission and natural gas which is reinjected or consumed prior to sale for the purpose of maintaining, stimulating, treating, transporting or producing crude oil or natural gas on the same lease or unit from which it was produced has no value and is exempt from taxation.
(k) Repealed by Laws 2016, ch. 16, 2.
(m) Natural gas which is consumed prior to sale for treating by-product water as defined in W.S. 41-3-903 so the water is acceptable for beneficial use in Wyoming has no value and is exempt from taxation.
(n) Crude oil and natural gas production resulting from any well that is drilled on or after July 1, 2020 and prior to December 31, 2025 as certified, by the oil and gas conservation commission, is exempt from the severance taxes imposed by W.S. 39-14-204(a)(iv) as provided in this subsection. Subject to subsection (o) of this section, the exemption under this subsection shall not apply to natural gas production when the twelve (12) month rolling average of the Henry hub spot price for natural gas is two dollars and ninety-five cents ($2.95) or more per thousand cubic feet at the time of first production from the well and shall not apply to the production of crude oil when the twelve (12) month rolling average of the West Texas Intermediate (WTI) spot price of sweet crude oil is fifty dollars ($50.00) or more per barrel at the time of first production from the well. If the exemption under this subsection is applicable to a new well based upon the oil or gas price at the time of first production, the exemption shall be an exemption of the full two percent (2%) tax rate under W.S. 39-14-204(a)(iv) for the first six (6) months of production and shall reduce the rate under W.S. 39-14-204(a)(iv) to one percent (1%) for the next six (6) months of production.
(o) In determining the exemption under subsection (n) of this section, the department shall use the twelve (12) month rolling average based on the monthly average of daily spot prices for West Texas Intermediate (WTI) per barrel of oil and the monthly average of daily spot prices for Henry hub per thousand cubic feet of natural gas for the twelve (12) month period immediately preceding first production from the well. The department shall post the most recent monthly average and the twelve (12) month rolling average for the calculated prices on its website. Not later than November 1 of each year, the department shall report to the joint revenue interim committee on the use of the exemptions under subsection (n) of this section, and associated revenue impacts.
(p) Natural gas that is consumed on the site and would have otherwise been vented or flared under the authority of the Wyoming oil and gas conservation commission has no value and is exempt from taxation as long as the natural gas is certified by the Wyoming oil and gas conservation commission as to have originated from a qualifying well.