SF0018

Provides a severance tax exemption for crude oil and natural gas produced through enhanced oil recovery techniques using Wyoming-sourced carbon dioxide.

• Exempts crude oil and natural gas from enhanced oil and gas recovery from one-half of the severance taxes under W.S. 39-14-204(a)(iii) and from all severance taxes under W.S. 39-14-204(a)(iv). (W.S. 39-14-205(q), W.S. 39-14-204(a)(iii), W.S. 39-14-204(a)(iv))
• Defines enhanced oil and gas recovery as all existing and future technologies or methods to recover oil and gas beyond traditional primary and secondary recovery methods, including technology to optimize development in new fields. (W.S. 39-14-205(q)(i)(B))
• Defines carbon capture, utilization and storage technology as technology that captures, reuses, stores, sequesters, or uses carbon dioxide emissions to prevent carbon dioxide from entering the atmosphere. (W.S. 39-14-205(q)(i)(A))
• Requires taxpayers seeking the exemption to complete an application on a form and in the manner prescribed by the department. (W.S. 39-14-205(q)(ii))
• Requires that the carbon dioxide used in enhanced oil and gas recovery must originate from a source within the state of Wyoming. (W.S. 39-14-205(q)(iv))
• Authorizes the department to consult with the Public Service Commission and Wyoming Oil and Gas Conservation Commission before approving exemptions. (W.S. 39-14-205(q)(v))
• Authorizes the department to promulgate rules necessary to implement the exemption provisions. (W.S. 39-14-205(q)(vi))
• Requires the department to report annually by November 1 to the joint revenue interim committee and joint minerals, business and economic development interim committee on the use of the exemption and associated revenue impacts. (W.S. 39-14-205(q)(vii))

Effective: July 1, 2025

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