Wyoming Gov. Mark Gordon has approved a tax cut for oil and gas producers that would take effect if low prices for the commodities persist.
The cut Gordon signed into law Friday would go to into effect when average oil prices fall below $50 per barrel for at least a year. Gas prices would need to average under $2.95 per thousand cubic feet.
In either case, severance taxes would drop from 6% to 4%.
The Casper Star-Tribune reports the law takes effect July 1. Gordon’s energy adviser, Randall Luthi, says the measure is the least the state can do amid low prices