| 1 | A bill to be entitled |
| 2 | An act relating to the tax on severance and production |
| 3 | of oil and gas; amending s. 211.027, F.S.; providing |
| 4 | exemptions from the tax on severance and production to |
| 5 | certain wells that produce oil or gas on or after a |
| 6 | specified date; limiting the duration of such |
| 7 | exemptions from the tax on severance and production; |
| 8 | providing for future repeal of such exemptions; |
| 9 | providing an effective date. |
| 10 |
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| 11 | Be It Enacted by the Legislature of the State of Florida: |
| 12 |
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| 13 | Section 1. Section 211.027, Florida Statutes, is amended |
| 14 | to read: |
| 15 | 211.027 Exemptions.-The following on-shore production is |
| 16 | not subject to any tax imposed under this part: |
| 17 | (1) Oil or gas production used for lease operations on the |
| 18 | lease or unit where produced. |
| 19 | (2) Gas returned to a horizon or horizons in the field |
| 20 | where produced, either through wells on the lease from which |
| 21 | produced or wells on other leases. |
| 22 | (3) Gas vented or flared directly into the atmosphere, |
| 23 | provided such gas is not otherwise sold. |
| 24 | (4) Oil and gas produced from a new field well completed |
| 25 | on or after July 1, 2012, for a period of 60 months after the |
| 26 | completion date. |
| 27 | (5) Oil and gas produced from a new producing well |
| 28 | completed on or after July 1, 2012, in a field that was |
| 29 | established by the Department of Environmental Protection before |
| 30 | July 1, 2012, for a period of 48 months after the completion |
| 31 | date. |
| 32 | (6) Oil and gas produced on or after July 1, 2012, from a |
| 33 | shut-in well that has been out of service for at least 24 months |
| 34 | prior to July 1, 2012, and through workover and mechanical |
| 35 | repair is returned to commercial production, for a period of 48 |
| 36 | months after the completion date. |
| 37 | (7) Oil and gas produced on or after July 1, 2012, from a |
| 38 | temporarily abandoned well or wellbore that has been out of |
| 39 | service for at least 24 months prior to July 1, 2012, and that |
| 40 | is brought into commercial production by redrilling and |
| 41 | recompletion, for a period of 48 months after the completion |
| 42 | date. |
| 43 | (8) Oil and gas produced on or after July 1, 2012, from |
| 44 | any new horizontal well or any new well having a total measured |
| 45 | depth in excess of 15,000 feet for a period of 60 months after |
| 46 | the completion date. |
| 47 | (9) New exemptions under subsections (4), (5), (6), (7), |
| 48 | and (8) may not be granted after June 30, 2021. |
| 49 | (10) Subsections (4), (5), (6), (7), and (8) are repealed |
| 50 | effective June 30, 2021. |
| 51 | Section 2. This act shall take effect July 1, 2012. |