KRS § 143A.025 — KY Code / Title XI / Chapter 143A / Section 143A.025
143A.025 Natural gas severance incentives
Status: in_force

143A.025 Natural gas severance incentives.

(1) As used in this section:

(a) "Alternative fuel facility" has the same meaning as in KRS 154.27-010;

(b) "Approved company" has the same meaning as in KRS 154.27-010;

(c) "Authority" has the same meaning as in KRS 154.27-010;

(d) "Base amount" has the same meaning as in KRS 154.27-010;

(e) "Capital investment" has the same meaning as in KRS 154.27-010;

(f) "Eligible project" has the same meaning as in KRS 154.27-010; and

(g) "Tax incentive agreement" has the same meaning as in KRS 154.27-010.

(2) Notwithstanding any other provision of KRS 134.580 or this chapter, an approved

company that purchases or severs natural gas or natural gas liquids that is subject to the

tax imposed under KRS 143A.020 and that is specifically used by the approved

company as feedstock for an alternative fuel facility described in KRS 154.27-

020(4)(d) may be eligible for an incentive under KRS 154.27-060.

(3) A company approved for incentives under KRS 154.27-060 shall file a request for the

incentive with the department within sixty (60) days of the completion of the

construction, retrofit, or upgrade of the facility. In subsequent years, the approved

company shall file a request for the incentive within sixty (60) days following the end

of each calendar year. The request for incentives shall be in the form prescribed by the

department through the promulgation of administrative regulations in accordance with

KRS Chapter 13A. The request for incentives shall include but not be limited to the

following information:

(a) Verification of the base amount;

(b) Verification of the thousand (1,000) cubic foot units (Mcf) of natural gas or

gallons of natural gas liquids purchased and used or severed and used by the

approved company as feedstock for an alternative fuel facility during the calendar

year for which the request for incentives is being made;

(c) Verification that the minimum capital investment as set forth in the tax incentive

agreement has been made;

(d) Verification of the output of natural-gas-derived or natural gas liquids-derived

alternative transportation fuel; and

(e) Any other information that the department may require.

(4) (a) The department and the authority shall review the request for incentives jointly

and shall verify that the request for incentives meets all requirements established

by statute and administrative regulation.

(b) The department shall verify the tax paid pursuant to KRS 143A.020 on the

natural gas and natural gas liquids purchased or severed by the approved

company and used as feedstock for an alternative fuel facility during the calendar

year for which the application was submitted and shall determine the amount of

the tax paid that qualifies for distribution to the approved company pursuant to

this section.

(c) The incentive amount shall be distributed to the approved company in quarterly

installments beginning on July 1 of the year following the calendar year for

which the request for incentives required under this section was submitted.

(6) The approved company seeking incentives shall execute information-sharing

agreements prescribed by the department with vendors from which it purchased natural

gas and natural gas liquids to verify the value of natural gas and natural gas liquids

purchased by the approved company and used as feedstock for an alternative fuel

facility and the amount of tax paid under KRS 143A.020 on such natural gas and

natural gas liquids.

(7) The department shall notify the authority of the incentive distributed to each approved

company upon request.