Exempts taxes on abandoned wells

Louisiana’s House of Representatives unanimously passed a bill to exempt from severance taxes on oil production from abandoned wells. Rep. Jean-Paul Coussan (R-Lafayette) described HB 662 as a win-win for the industry and the environment. Environment advocate Cynthia Sarthou, executive director of Healthy Gulf, called it a “real gift to the oil industry.” The state has designated more than 4,000 oil wells in the state as abandoned. Louisiana's 14 coastal parishes have approximately 27,400 abandoned gas wells on land, according to a study from LSU scientist Eugene Turner. Coussan's bill would incentivize new oil producers to take over the liability of the well by eliminating the severance tax, which is typically 12.5 percent. The tax exemption would last for two years or until production of the well surpasses the cost of operation. (Source: NOLA.com 05/12/21) Oil from abandoned Louisiana wells would be exempt from tax under House-passed bill | Local Politics | nola.com