Energy (Oil & Gas)

This bill amends Montana's tax code to create a uniform tax rate for both pre-1999 and post-1999 stripper oil wells. It increases the price threshold for the reduced tax rate from $30 to $54 per barrel of oil (using West Texas Intermediate pricing), meaning the lower tax rate only applies when oil prices fall below $54. Stripper wells are defined as those producing 3-10 barrels/day for pre-1999 wells or 3-15 barrels/day for post-1999 wells. The change affects small oil producers operating these low-production wells across Montana, directly altering their tax liability based on current oil market prices. The bill amends Sections 15-36-303 and 15-36-304 of Montana Code Annotated.

Bill LC 2987, titled "Generally revise oil and natural gas laws," aimed to update regulations governing the oil and natural gas industry. However, the bill was assigned a drafter in December 2024, placed on hold in January 2025, and ultimately died in the legislative process by May 27, 2025. No specific provisions or mechanisms were detailed in the context, as the bill never advanced beyond the drafting stage. Since it did not become law, it did not directly affect any industry or regulations. The legislative process for this bill concluded without any concrete policy changes.