§ 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(b) Repealed by Laws 2016, ch. 16, § 2.
(c) Repealed by Laws 2016, ch. 16, § 2.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(e) Repealed by Laws 2016, ch. 16, § 2.
(f) Repealed by Laws 2016, ch. 16, § 2.
(g) Repealed by Laws 2016, ch. 16, § 2.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(k) Repealed by Laws 2016, ch. 16, § 2.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.