2002

State of Wyoming

02LSO-0213.W1

 

 

WORKING DRAFT

 

 

HOUSE BILL NO.      

 

 

Oilfield services-taxation.

 

Sponsored by:  Joint Revenue Interim Committee

 

 

A BILL

 

for

 

AN ACT relating to taxation and revenue; providing for the taxation of certain oilfield services as specified; and providing for an effective date.

 

Be It Enacted by the Legislature of the State of Wyoming:

 

Section 1.  W.S. 39-15-101(a) by creating a new paragraph (xviii), 39-15-103(a)(i)(K) and 39-15-105(a)(viii)(B) are amended to read:

 

39-15-101.  Definitions.

 

(a)  As used in this article:

 

           (xviii)  "Well site" means an area within a two hundred fifty (250) foot radius of the wellbore.

 

39-15-103.  Imposition.

 

(a)  Taxable event.  The following shall apply:

 

(i)  Except as provided by W.S. 39-15-105, there is levied an excise tax upon:

 

(K)  The sales price paid for contract seismographic surveying, contract geophysical surveying and other contract geophysical exploration operations calculated to reveal the existence of geologic conditions favorable to the accumulation of oil or gas, and for all services rendered in and all types of coring, logging, testing, stimulating, perforating, cementing, completing, recompleting, repairing, equipping for production or abandonment, and all other services in completing or attempting to complete any well for production of oil or gas or as an injection or disposal well for the injection of water, gas, air, steam or other substances into any underground stratum, including but not limited to all types of logging, testing, stimulating, perforating or cementing any such well or formation encountered therein  all services rendered to real or tangible personal property within a well site beginning with and including the setting and cementing of production casing and continuing with all activities sequentially required for the production of any well regardless of the chronological occurrence of the activity.  All services required during the entire productive life of the well, including recompletion, all the way through abandonment shall be subject to this subparagraph;

 

39-15-105.  Exemptions.

 

(a)  The following sales or leases are exempt from the excise tax imposed by this article:

 

(viii)  For the purpose of exempting sales of services and tangible personal property as an economic incentive, the following are exempt:

 

(B)  Sales of the services of professional engineers, geologists or members of similar professions and charges made by contractors, whether on a per diem, lineal footage, fee or other contract basis for the drilling of any wells for the production or attempted production of oil or gas, or for the deepening of any wells previously drilled for oil or gas below the maximum depth to which they were initially drilled, or for the drilling of stratigraphic test or core holes for the sole purpose of obtaining geologic information including the sales price paid for all services leading to building location, drilling and all related activities that must be completed prior to setting the production casing, including seismographic, geophysical surveying, coring, logging and testing done prior to the setting of production casing for the drilling of any well;

 

Section 2.  This act is effective July 1, 2002.

 

(END)