June 6, 2009

 Senate Democrat Environmental Chairman Raphael Musto has introduced a severance tax bill in the Senate. Senate Bill 905 requires a driller to apply for a severance tax registration certificate, requires wellhead meters and establishes a reporting period defined as "a calendar month in which natural gas is severed.”

The tax imposed would be 5% of the gross value of units severed at the wellhead during a reporting period, plus 4.7 cents per unit severed. To read the bill, click here. The bill is similar to HB 1489 introduced by House Chairman Camille Bud George.