Severance taxes are set and collected at the state level. States usually calculate the tax based on the value and/or volume produced; sometimes the method differs for oil, natural gas, and URL Certain oil wells may be exempt from severance tax based on the amount they produce (i.e. stripper wells) or the type of well (i.e. horizontal, tertiary, deep, etc). External links Texas Severance Tax Incentives: Past and Present (Railroad Commission of Texas) Coal and Renewables in Central Appalachia: The Impact of Coal on the West Virginia State Budget (2010) Coal and Renewables in Central Appalachia: The Impact of Coal on the Tennessee State Budget (2010) National Conference of State Legislatures - State Oil and Gas Severance Taxes
Severance taxes are set and collected at the state level. States usually calculate the tax based on the value and/or volume produced; sometimes the method differs for oil, natural gas, and URL Production from certain wells may be exempt from severance tax based on the amount of production (i.e. "stripper" wells) or the type of well (i.e. horizontal, tertiary, deep, etc). External links Texas Severance Tax Incentives: Past and Present (Railroad Commission of Texas) Coal and Renewables in Central Appalachia: The Impact of Coal on the West Virginia State Budget (2010) Coal and Renewables in Central Appalachia: The Impact of Coal on the Tennessee State Budget (2010) 
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Certain oil
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they produce
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stripper
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National Conference of State Legislatures - State Oil and Gas Severance Taxes