HB 515

1
A bill to be entitled
2An act relating to oil and gas production taxes; amending
3s. 211.02, F.S.; providing for differential rates for the
4oil production tax on tertiary oil adjusted for delivered
5price; revising definitions; amending s. 211.027, F.S.;
6exempting certain oil and gas production from the tax for
7a certain period of time; providing for future repeal of
8the exemptions; providing an effective date.
9
10Be It Enacted by the Legislature of the State of Florida:
11
12     Section 1.  Subsection (1) and paragraph (a) of subsection
13(3) of section 211.02, Florida Statutes, are amended to read:
14     211.02  Oil production tax; basis and rate of tax; tertiary
15oil.--An excise tax is hereby levied upon every person who
16severs oil in the state for sale, transport, storage, profit, or
17commercial use. Except as otherwise provided in this part, the
18tax is levied on the basis of the entire production of oil in
19this state, including any royalty interest. Such tax shall
20accrue at the time the oil is severed and shall be a lien on
21production regardless of the place of sale, to whom sold, or by
22whom used and regardless of the fact that delivery of the oil
23may be made outside the state.
24     (1)  The amount of tax shall be measured by the value of
25the oil produced and saved or sold during a month. The value of
26oil shall be taxed at the following rates:
27     (a)  Small well oil and tertiary oil, 5 percent of gross
28value.; and
29     (b)  Tertiary oil, a percentage of gross value, adjusted
30for the delivered price of the oil, as follows:
31     1.  When the delivered price is equal to or greater than
32$100 per barrel, 5 percent of gross value.
33     2.  When the delivered price is equal to or greater than
34$60 per barrel but less than $100 per barrel, 3 percent of gross
35value.
36     3.  When the delivered price is less than $60 per barrel, 1
37percent of gross value.
38     (c)(b)  All other oil, 8 percent of gross value.
39     (3)(a)  The term "tertiary oil" means the excess barrels of
40oil produced, or estimated to be produced, as a result of the
41actual use of a tertiary recovery method methods in a qualified
42enhanced oil tertiary recovery project, over the barrels of oil
43which could have been produced by continued maximum feasible
44production methods in use prior to the start of tertiary
45recovery. A "qualified enhanced oil tertiary recovery project"
46means a project for enhancing recovery of oil which meets the
47requirements of 26 U.S.C. s. 43(c)(2) s. 4993(c), Internal
48Revenue Code of 1954, as amended, or substantially similar
49requirements.
50     Section 2.  Subsections (4), (5), and (6) are added to
51section 211.027, Florida Statutes, to read:
52     211.027  Exemptions.--The following on-shore production is
53not subject to any tax imposed under this part:
54     (4)  Oil and gas produced from a new field well completed
55after July 1, 2009, for a period of 60 months after the
56completion date. This subsection is repealed June 30, 2019.
57     (5)  Oil and gas produced after July 1, 2009, for a period
58of 48 months after the completion date, from:
59     (a)  A field that was established by the Department of
60Environmental Protection before July 1, 2009, from a new
61producing well.
62     (b)  A shut-in well that has been out of service for a
63period of at least 24 months prior to July 1, 2009, and through
64workover and mechanical repair is returned to commercial
65production.
66     (c)  A temporarily abandoned well or wellbore that has been
67out of service for a period of at least 24 months prior to July
681, 2009, and that is brought into commercial production by
69redrilling and recompletion.
70
71This subsection is repealed June 30, 2019.
72     (6)  Oil and gas produced after July 1, 2009, for a period
73of 60 months after the completion date, from any horizontal well
74or any well having a total measured depth in excess of 15,000
75feet. This subsection is repealed June 30, 2019.
76     Section 3.  This act shall take effect July 1, 2009.


CODING: Words stricken are deletions; words underlined are additions.