Committee approves amendment to oil production deduction; bill passes as amended

The Finance and Taxation Committee voted to adopt an amendment to House Bill 14‑83 and then approved the bill as amended.

Senator Wallen presented proposed amendments (labeled 25.0108.02005 in the handout) that change the deduction applied to gross production and add a three‑year provision intended to allow wells that produce up to 300,000 barrels over the period to qualify under the lower rate. The amendment reduces a per‑barrel deduction from about $0.0707 to $0.02 per barrel (a difference of roughly $0.05 per barrel, as described in committee discussion) and clarifies that the provision can apply to wells producing horizontally as well as vertically.

Senator Wallen said the 300,000‑barrel threshold and the temporary reduction were included to enable some horizontal wells to produce revenue that would not otherwise be collected; the amendment also included an opt‑in condition for properties on reservations or tribal land. Wallen told members that industry groups had reviewed the change and supported it as a way to generate revenue where none would be collected otherwise.

A motion to pass the amendment was moved and seconded; the clerk recorded unanimous support for the amendment in the roll call. The committee then voted to pass House Bill 14‑83 as amended. The clerk recorded affirmative votes for the measure; the transcript shows the motion to pass as amended carried and Senator Wallen volunteered to carry the bill forward.

No fiscal note that required re‑referral was recorded during the committee session. Committee members asked technical questions about definitions of vertical versus horizontal wells; legislative staff said Century Code contains no statutory definition distinguishing vertical from horizontal wells and legislative management recommended using the term "well" without further statutory definition.

The committee accepted the amendment and approved the bill as amended.