Bill to lower oil severance taxes signed into law

Bill to lower oil severance taxes signed into law

Legislation to lower the Mississippi severance tax on hydraulically fractured oil wells from 6 percent to 1.25 percent for first 30 months of well production has been signed into law by Gov. Phil Bryant.

MCCOMB, Miss. (AP) — Legislation to lower the Mississippi severance tax on hydraulically fractured oil wells from 6 percent to 1.25 percent for first 30 months of well production has been signed into law by Gov. Phil Bryant.

House Bill 1698 also will allow counties where fracking is occurring to keep a larger share of tax proceeds. The law takes effect July 1.

Hydraulic fracturing is a technique used by the energy industry to extract oil and gas from rock by injecting high-pressure mixtures of water, sand or gravel and chemicals.

The Enterprise-Journal reports (http://bit.ly/Zs7QEp) that several companies are conducting horizontal drilling operations in the Tuscaloosa Marine Shale formation in Amite and Wilkinson counties in southwest Mississippi.

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Information from: Enterprise-Journal, http://www.enterprise-journal.com


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