In the early 1990s, the Legislature enacted a tax break exempting the incremental oil or gas production resulting from a workover or recompletion of an oil or gas well to pay only a 2% severance tax (instead of 6%) for a period of 24 months following the workover or recompletion.

The tax break originally applied to workovers or recompletions between July 1, 1993, and December 31, 1996. HB 260 renewed the tax break to cover workovers or recompletions between January 1, 1997 and December 31, 2000.

HB 260 also added language similar to that in HB 45 (which extended the tax break on all new oil and gas) so that the tax break applies only for the 24 months following the workover or recompletion, or until the price is equal to or exceeds $22/barrel or $2.75/MCF for the preceding six months.

A report from the Wyoming Oil & Gas Conservation Commission and the Wyoming Department of Revenue - Mineral Tax Division put the severance tax losses on oil and gas workovers and recompletions at $600,000 for 1994, $1.7 million for 1995, and $2 million for 1996.