SALT Report 2403 – The West Virginia Legislature passed a bill that terminates the tax exemption for all natural gas and oil produced from a well that has not produced marketable quantities of natural gas or oil for the five consecutive years that immediately precede the year in which the well was placed into production.
The bill also terminates the exemption for wells placed back into production on or after July 1, 2013. However, if a well is placed back into service on or before June 30, 2013 the exemption would continue for the remainder of the ten-year period for which the exemption originally applied.
The provisions in this Bill are effective July 1, 2013.
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