Mississippi has reduced the severance tax on hydrocarbons produced from horizontal wells and the sales tax paid on electricity for oil and gas produced via carbon dioxide enhanced oil recovery.
Starting July 1 until June 30, 2018, the severance tax on output from qualifying horizontal wells is reduced to 1.3% from 6% for 30 months or until payout of the well.
The bill, signed by Gov. Phil Bryant in late April, could benefit the emerging Tuscaloosa Marine shale unconventional oil play in which only a few wells have been drilled in southwestern Mississippi as well as several other formations, said the Mississippi Development Authority.
The severance tax could benefit Encana Corp., Goodrich ...