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Bill Summary · LC 1911

Legislative bill overview

Bill LC 1911 proposes revisions to how Montana taxes "stripper oil wells"—low-producing wells that extract minimal daily oil volumes. The bill would modify the tax structure or assessment methodology for these marginal producers, though specific provisions are not detailed in the available record. The draft died in the legislative process in May 2025 without advancing to formal introduction.

Why is this important

Stripper wells represent a significant portion of U.S. oil production but operate on thin profit margins. Tax policy affecting these wells influences whether operators continue production, abandon wells, or make new investments—with consequences for state revenue, rural employment, and environmental remediation costs. Montana's oil and gas industry contributes substantially to state budgets and local economies.

Potential points of contention

  • Economic viability vs. state revenue: Reducing taxes may help marginal operators survive low oil prices but decreases state tax collections; increasing taxes risks well abandonment and stranded remediation liability
  • Environmental responsibility: Stripper wells require ongoing maintenance; inadequate profitability may lead operators to defer environmental compliance or abandon wells without proper closure
  • Equity concerns: Tax treatment differences between stripper wells and conventional wells raise fairness questions about subsidy allocation within the energy sector

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

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