| 1 | A bill to be entitled |
| 2 | An act relating to oil and gas production taxes; amending |
| 3 | s. 211.02, F.S.; providing for differential rates for the |
| 4 | oil production tax on tertiary oil adjusted for delivered |
| 5 | price; revising definitions; amending s. 211.027, F.S.; |
| 6 | exempting certain oil and gas production from the tax for |
| 7 | a certain period of time; providing for future repeal of |
| 8 | the exemptions; providing an effective date. |
| 9 |
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| 10 | Be It Enacted by the Legislature of the State of Florida: |
| 11 |
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| 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 |
| 15 | oil.--An excise tax is hereby levied upon every person who |
| 16 | severs oil in the state for sale, transport, storage, profit, or |
| 17 | commercial use. Except as otherwise provided in this part, the |
| 18 | tax is levied on the basis of the entire production of oil in |
| 19 | this state, including any royalty interest. Such tax shall |
| 20 | accrue at the time the oil is severed and shall be a lien on |
| 21 | production regardless of the place of sale, to whom sold, or by |
| 22 | whom used and regardless of the fact that delivery of the oil |
| 23 | may be made outside the state. |
| 24 | (1) The amount of tax shall be measured by the value of |
| 25 | the oil produced and saved or sold during a month. The value of |
| 26 | oil shall be taxed at the following rates: |
| 27 | (a) Small well oil and tertiary oil, 5 percent of gross |
| 28 | value.; and |
| 29 | (b) Tertiary oil, a percentage of gross value, adjusted |
| 30 | for 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 |
| 35 | value. |
| 36 | 3. When the delivered price is less than $60 per barrel, 1 |
| 37 | percent 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 |
| 40 | oil produced, or estimated to be produced, as a result of the |
| 41 | actual use of a tertiary recovery method methods in a qualified |
| 42 | enhanced oil tertiary recovery project, over the barrels of oil |
| 43 | which could have been produced by continued maximum feasible |
| 44 | production methods in use prior to the start of tertiary |
| 45 | recovery. A "qualified enhanced oil tertiary recovery project" |
| 46 | means a project for enhancing recovery of oil which meets the |
| 47 | requirements of 26 U.S.C. s. 43(c)(2) s. 4993(c), Internal |
| 48 | Revenue Code of 1954, as amended, or substantially similar |
| 49 | requirements. |
| 50 | Section 2. Subsections (4), (5), and (6) are added to |
| 51 | section 211.027, Florida Statutes, to read: |
| 52 | 211.027 Exemptions.--The following on-shore production is |
| 53 | not subject to any tax imposed under this part: |
| 54 | (4) Oil and gas produced from a new field well completed |
| 55 | after July 1, 2009, for a period of 60 months after the |
| 56 | completion date. This subsection is repealed June 30, 2019. |
| 57 | (5) Oil and gas produced after July 1, 2009, for a period |
| 58 | of 48 months after the completion date, from: |
| 59 | (a) A field that was established by the Department of |
| 60 | Environmental Protection before July 1, 2009, from a new |
| 61 | producing well. |
| 62 | (b) A shut-in well that has been out of service for a |
| 63 | period of at least 24 months prior to July 1, 2009, and through |
| 64 | workover and mechanical repair is returned to commercial |
| 65 | production. |
| 66 | (c) A temporarily abandoned well or wellbore that has been |
| 67 | out of service for a period of at least 24 months prior to July |
| 68 | 1, 2009, and that is brought into commercial production by |
| 69 | redrilling and recompletion. |
| 70 | |
| 71 | This subsection is repealed June 30, 2019. |
| 72 | (6) Oil and gas produced after July 1, 2009, for a period |
| 73 | of 60 months after the completion date, from any horizontal well |
| 74 | or any well having a total measured depth in excess of 15,000 |
| 75 | feet. This subsection is repealed June 30, 2019. |
| 76 | Section 3. This act shall take effect July 1, 2009. |