WV Bill Lowering Shale Well Severance Tax for 2 Years Passes Senate

In early February, MDN told you about West Virginia Senate Bill (SB) 706, which proposed reducing the state’s severance tax from 5% to 3% for new natural gas and oil wells drilled after June 30, 2026, that meet specific production thresholds (see WV Bill Lowers Shale Well Severance Tax from 5% to 3% for 2 Years). The reduction would apply only to future projects, leaving existing wells at current rates. While severance taxes provide vital but volatile revenue—ranging from $98 million to $588 million in recent years—this legislation seeks to adjust the fiscal landscape for one of the state’s most profitable resources. Since our first post, SB 706 has stalled in committee. So, creative Senators added the language of the bill to another bill, House Bill (HB) 5687. That bill with the amended language was passed by the full Senate last week.

---

To view this content, log into your member account. (Not a member? Join Today!)