Providing for a three-year exemption from severance tax for new oil and gas wells.

HB 2775 creates a three-year exemption from Kansas' 8% severance tax for all new oil and gas wells. This directly affects operators who drill new wells by eliminating their initial tax burden on production. The exemption applies to the standard 8% tax rate on the gross value of oil or gas produced, covering all new wells regardless of size or location during their first three years of operation. It amends existing tax law (K.S.A. 79-4217) to add this temporary relief for new well operators.