HB 3732 Signed By Texas Governor

On June 15, Texas Governor Rick Perry signed House Bill 3732 which was passed by the Texas legislature on May 30th. By signing this bill, the state of Texas will now be the first state in the nation to adopt a regulatory framework that will reward energy companies who can meet advanced clean energy emission standards.

This bill, among other things, provides a 7-year tax severance tax break on oil recovered from an EOR project that uses anthropogenic CO2 and provides definitions for eligible sequestration, including 99% retained carbon dioxide over 1,000 years.