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Senate extends plug‑fund tax to continue orphan‑well remediation; debate centers on tax and beneficiaries
Summary
Lawmakers extended an excise tax that helps fund orphan‑well plugging and remediation, with proponents framing the measure as support for landowners and rural recovery while opponents argued it effectively maintains a tax that flows largely to general revenue.
Senators voted to extend the excise tax and related sunset provisions that fund plugging orphan wells and related programs. Senator Bergstrom, the bill’s sponsor, explained the bill aligns title 68 with another statutory title and preserves a revenue stream used in part to plug orphan wells; she cited last year’s plugging fund receipts and noted the scale of the problem: thousands of wells remain to be plugged.
Floor questions probed whether keeping the tax in place effectively raises taxes, who benefits from the revenue, and whether the collections largely flow to general revenue. Senator Jett and other opponents argued that allowing the excise tax to sunset would reduce the tax burden on producers and make the state more competitive. Supporters said a portion of revenue is used for plugging and that maintaining the fund helps surface right owners and agriculture reclaim land.
After debate the Senate recorded 37 ayes and 9 nays and declared the bill passed as an emergency measure. Supporters urged the body to keep funds available for remediation; opponents urged sunset to reduce producer taxes. The bill has been advanced, enrolled and will be transmitted under emergency declaration.
