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HB 128

Enhanced oil recovery-severance tax exemption.

2026 Regular Session Introduced by Kevin Campbell and 5 co-sponsors

The bill exempts severance taxes for oil produced using enhanced oil recovery methods.

Assigned Chapter Number 46
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WeVote Research Nonpartisan
Bill Summary · HB 128

Bill Summary: HB 128 (2026) – Enhanced Oil Recovery Severance Tax Exemption

Main purpose and intent

  • The bill establishes or expands an exemption related to severance taxes for oil produced using enhanced oil recovery (EOR) methods.
  • The overarching goal is to encourage or support oil production activities that employ EOR techniques by reducing the immediate tax burden on such production.

Key provisions and changes

  • Severance tax exemption for EOR: Applies to oil produced using enhanced oil recovery methods. The specific mechanics (e.g., eligibility criteria, duration, thresholds) are designed to exempt a portion or all severance taxes on qualifying EOR-produced oil.
  • Administrative scope: The exemption would be administered within the state’s severance tax framework, likely requiring determinations by the revenue or oil and gas agencies on whether a given production qualifies for the exemption.
  • Potential triggers or limitations: The bill may specify conditions such as:
    • Type(s) of EOR technology covered (e.g., CO2 injection, chemical flooding, thermal methods).
    • Geographic or field-based applicability (e.g., all Wyoming fields or only certain oil-bearing formations).
    • Documentation requirements to prove EOR activity (permitting, project plans, or operator attestations).
    • Sunset or phasing provisions (whether the exemption has a finite duration or is permanent).
  • Economic impact provisions: The text may include fiscal notes or expected revenue impact, outlining anticipated changes in state severance revenue under current and projected production scenarios.

Who/what would be affected

  • Oil producers using EOR methods: Operators injecting CO2 or employing other EOR techniques in Wyoming wells would be eligible to claim the severance tax exemption.
  • State tax administration and revenue context: Wyoming Department of Revenue (or the relevant state agency) would administer the exemption, requiring administrative rules or guidelines to implement eligibility, verification, and compliance.
  • Fiscal impact on state revenues: Potential reduction in severance tax collections attributable to the exemption, with corresponding economic considerations for state budgeting and funding for public services.

Significant procedural and timeline aspects

  • Introduction and committee actions (Wyoming 2026 session):
    • Introduced and referred to H09 – Minerals.
    • Passed the House Minerals committee with a Do Pass recommendation (9-0-0-0-0).
    • Advanced through House readings and COW (Committee of the Whole) actions, then passed the House for concurrence with a strong vote (H Concur: Passed 59-0-3-0-0).
    • Passed the Senate in 3rd Reading (30-1-0-0-0), with subsequent passage back to the House for concurrence.
  • Concurrence and final enactment:
    • The bill was signed into law as House Enrolled Act (HEA) No. 0018, receiving Governor’s signature on March 3–6, 2026.
    • Assigned Chapter Number 46 upon enactment, indicating it became law in the 2026 session.
  • Effective date: As enacted law, the bill’s provisions would specify the effective date of the exemption and any transition rules (not stated in the provided information). Typically, such provisions include a date from which the exemption applies to qualifying production and may outline any grandfathering or ongoing compliance timelines.

Sponsors

  • Primary and co-sponsors include:
    • Co-sponsors: Ed Cooper, J.T. Larson, Reuben Tarver, Bob Davis, John Kolb, Kevin Campbell

Practical considerations for stakeholders

  • Oil producers should review project plans that rely on EOR to determine if they qualify for the exemption and what documentation is required.
  • Operators may need to adjust reporting and compliance processes to align with the exemption’s eligibility criteria.
  • Local governments and state agencies will monitor fiscal impacts to ensure revenue projections reflect the exemption’s effect on severance tax collections.

Note: This summary reflects the bill’s stated purpose as an enhanced oil recovery severance tax exemption and the procedural path through the 2026 Wyoming legislative session, culminating in enactment as HEA No. 0018. For precise eligibility criteria, definitions, and timeline details, consult the enacted text and any accompanying administrative rules.

Compiled from official sources — confirm details with the bill’s official record.

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