In 2005 the Texas legislature passed a law that may go into effect for the first time brining some tax relief to Small Operators in Texas. The 2005 law created a tax credit for small producers triggered when oil prices plunge below a certain level ($30 per barrel), that condition was met in late February. The Tax credit will apply to those operators “pumping an average of 15 barrels a day over three months.” The tax credit is based on average prices over the period and adjusted to 2005 levels. The tax credit applies to operators of marginal and stripper wells, which are common across Texas. These small operators produce 20% of the oil in Texas according to Ed Longanecker, president of the Texas Independent Producers and Royalty Owners group.