Relating to a severance tax exemption for oil and gas produced from certain previously inactive restimulation wells; providing a civil penalty.

HB 3159 provides a severance tax exemption for oil and gas produced from specific restimulation wells that were previously inactive. The exemption applies to wells certified by the Railroad Commission as "qualifying wells" after undergoing restimulation treatment, excluding wells with less than 60 months of prior production or those part of enhanced oil recovery projects. Hydrocarbons from these wells are exempt from severance taxes for up to 36 consecutive months or until the total exempted tax value reaches $750,000 (whichever is lower), whichever is lower. This policy directly affects oil and gas operators who perform restimulation on eligible inactive wells, reducing their tax burden during the exemption period.