State of Miss. provides help for TMS

From EnCana's earning report.  Unfortunately no Ash well info.

In April, the State of Mississippi approved a severance tax reduction that reduces the tax rate from 6.0 percent to 1.3 percent on new horizontal wells commencing production on or after July 1, 2013 for the first 30 months of production of a well. This five-year program supports the pursuit of commerciality by positively impacting Encana's economics for the emerging Tuscaloosa Marine Shale (TMS) play. With six wells producing in the TMS and two additional wells expected to begin production in the second quarter of 2013, the company is gaining confidence in the potential of the play as it nears commerciality.

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Permalink Reply by Spring Branch,mineral owner on April 23, 2013 at 5:18

Should I take this to mean that the discounted Severance Tax program is scheduled to last for only five years and expire on July 1, 2013.  If so, would a horizontal well drilled in 2017 still get 30 months of the discounted rate?

Permalink Reply by Andrew on April 23, 2013 at 5:50

Great move by the state of MS, that relief will make a real difference on shale well economics. 

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