reglab/statecodes huggingface dataset:
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 15 - NEW DISCOVERY WELLS [REVOKED] › Section 710:45-9-71 - Definitions [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Amended at 13 Ok Reg
					 771, eff 8-16-95 (emergency); Added at 13 Ok Reg 3095, eff 7-11-96; Amended at
					 15 Ok Reg 2416, eff 6-11-98; Amended at 18 Ok Reg 869, eff 2-23-01 (emergency);
					 Amended at 18 Ok Reg 1330, eff 5-11-01; Amended at 21 Ok Reg 1128, eff 5-13-04;
					 Amended at 24 Ok Reg 2668, eff 7-12-07; Amended at 27 Ok Reg 2275, eff 7-11-10;
					 Amended at 29 Ok Reg 523, eff 5-11-12
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 15 - NEW DISCOVERY WELLS [REVOKED] › Section 710:45-9-72 - Qualification procedure [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Added at 13 Ok Reg
					 771, eff 8-16-95 (emergency); Added at 13 Ok Reg 3095, eff 7-11-96; Amended at
					 23 Ok Reg 2816, eff 6-25-06
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 15 - NEW DISCOVERY WELLS [REVOKED] › Section 710:45-9-73 - Rebates - Refund procedure [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Added at 13 Ok Reg
					 771, eff 8-16-95 (emergency); Added at 13 Ok Reg 3095, eff 7-11-96; Amended at
					 18 Ok Reg 869, eff 2-23-01 (emergency); Amended at 18 Ok Reg 1330, eff 5-11-01;
					 Amended at 21 Ok Reg 1128, eff 5-13-04; Amended at 23 Ok Reg 2816, eff 6-25-06;
					 Amended at 24 Ok Reg 2668, eff 7-12-07; Amended at 25 Ok Reg 2039, eff 7-1-08;
					 Amended at 27 Ok Reg 2275, eff 7-11-10; Amended at 29 Ok Reg 523, eff
					 5-11-12
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 15 - NEW DISCOVERY WELLS [REVOKED] › Section 710:45-9-74 - Audit requirements [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Added at 13 Ok Reg
					 771, eff 8-16-95 (emergency); Added at 13 Ok Reg 3095, eff 7-11-96; Revoked at
					 18 Ok Reg 869, eff 2-23-01 (emergency); Revoked at 18 Ok Reg 1330, eff
					 5-11-01
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 17 - ECONOMICALLY AT-RISK LEASES › Section 710:45-9-80 - Scope of Part 17

Current through Vol. 41, No. 20, July 1, 2024
Exemption from the levy of gross production tax on
					 economically at-risk leases set out in 68 O.S.Supp. 2022, Section 1001.3a shall
					 be determined according to the provisions of this Part. [
See:
68
					 O.S. Supp. 2022, Section 1001.3a]
Added at 14 Ok Reg
					 2696, eff 6-26-97; Amended at 20 Ok Reg 2160, eff 6-26-03; Amended at 23 Ok Reg
					 2816, eff 6-25-06
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 17 - ECONOMICALLY AT-RISK LEASES › Section 710:45-9-81 - Definitions

Current through Vol. 41, No. 20, July 1, 2024
The following words and terms, when used in this Chapter,
					 shall have the following meaning, unless the context clearly indicates
					 otherwise:
"Active" production days
means any day in
					 which oil or natural gas was produced by the lease as reflected in the daily
					 production logs.
"Economically at-risk oil or gas lease"
means
					 beginning with calendar year 2022, and each year thereafter:
(A) Any Tax Commission assigned production
				  unit number classified as an oil lease that operated at a net profit which is
				  less than the total gross production tax remitted for such lease during the tax
				  reporting year with an average production volume per well of ten (10) barrels
				  of oil and the monthly average price of oil for the year was less than Fifty
				  Dollars ($50.00) per barrel; and
(B) Any Tax Commission assigned production
				  unit number classified as a gas lease that operated at a net loss or a net
				  profit which is less than the total gross production tax remitted for such
				  lease during the tax reporting year with an average production volume per lease
				  of sixty (60) MCF of natural gas per day and the "monthly average price of gas"
				  for the year was less than Three Dollars and Fifty Cents ($3.50) per MMBtu.
"Gas Lease"
means any Tax Commission assigned
					 production unit number with a gas to oil production ratio of fifteen thousand
					 (15,000) cubic feet of natural gas or more to one (1) barrel of oil.
"Oil Lease"
means any Tax Commission assigned
					 production unit number with a gas to oil production ratio of less than fifteen
					 thousand (15,000) cubic feet of natural gas to one (1) barrel of
					 oil.
Added at 14 Ok Reg
					 2696, eff 6-26-97; Amended at 15 Ok Reg 2156, eff 4-22-98 through 7-14-98
					 (emergency)1; Amended at 17 Ok Reg 2668, eff
					 6-25-00; Amended at 23 Ok Reg 2816, eff 6-25-06; Amended at 25 Ok Reg 2039, eff
					 7-1-08
1This emergency action expired
					 without being superseded by a permanent action. Upon expiration of an emergency
					 amendatory action, the last effective permanent text is reinstated. Therefore,
					 on 7-15-98 (after the 7-14-98 expiration of the emergency action), the text of
					 710:45-9-81 reverted back to the permanent text that became effective 6-26-97,
					 as was last published in the 1997 OAC Supplement, and remained as such until
					 amended again by permanent action on
					 6-25-00.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 17 - ECONOMICALLY AT-RISK LEASES › Section 710:45-9-81.1 - Determination of average production volume and monthly average price of oil and gas

Current through Vol. 41, No. 20, July 1, 2024
(a) Average
				  production volume shall be determined based upon the lease classification,
				  wherein only the primary product shall be used to determine the average
				  production volume. For example, an oil lease that produced 2,789 barrels over
				  342 active production days during the calendar year would have an average
				  volume of 8.16 barrels per day.
(b)
				  Monthly average price of oil shall be determined by taking the gross value of
				  oil produced during the calendar year divided by the gross volume of oil
				  produced from the lease, based on a per-barrel measurement of forty-two (42)
				  U.S. gallons of two hundred thirty-one (231) cubic inches per gallon, computed
				  at a temperature of sixty (60) degrees Fahrenheit.
(c) Monthly average price of gas shall be
				  determined by taking the gross value of natural gas produced during the
				  calendar year divided by the gross volume of natural gas produced based on a
				  measurement of one million (1,000,000) British thermal units (MMBtu).
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 17 - ECONOMICALLY AT-RISK LEASES › Section 710:45-9-82 - Exemption period

Current through Vol. 41, No. 20, July 1, 2024
(a)
Exemption
				  period.
The exemption for economically at-risk oil and gas leases is
				  limited to calendar year 2022 and subsequent tax years, with each year being
				  claimed separately.
(b)
Filing period.
A refund of gross production taxes must be filed
				  within eighteen (18) months after the close of the calendar year for which an
				  exemption is claimed. Refund claims submitted after eighteen (18) months shall
				  not be accepted by the Tax Commission. For example, economically at-risk refund
				  claims for calendar year 2022 shall be filed beginning January 1, 2023 until
				  June 30, 2024.
Added at 14 Ok Reg
					 2696, eff 6-26-97; Amended at 15 Ok Reg 2416, eff 6-11-98; Amended at 17 Ok Reg
					 2668, eff 6-25-00; Amended at 23 Ok Reg 2816, eff 6-25-06; Amended at 25 Ok Reg
					 2039, eff 7-1-08; Amended at 29 Ok Reg 523, eff
					 5-11-12
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 17 - ECONOMICALLY AT-RISK LEASES › Section 710:45-9-83 - Certification

Current through Vol. 41, No. 20, July 1, 2024
(a)
General
				  provisions.
This Section establishes criteria for determining whether an
				  operator of an economically at-risk oil lease has met the required conditions
				  to apply for an exemption from gross production tax levied on such and
				  establishes a procedure for the issuance of the refund.
(b)
Application to Oklahoma Tax
				  Commission; determination; approval.
Any operator who desires to make
				  application to have a lease certified as being economically at-risk shall
				  submit electronically through the Oklahoma Taxpayer Access Point (OKTAP) the
				  following information:
(1) Properly completed
				  Form 329;
(2) Division Order(s)
				  supporting the applicable royalty interest payments made during the claim
				  period;
(3) An itemization of all
				  expenses claimed as lease operating expenses;
(4) For leases governed by a Joint Operating
				  Agreement (JOA) a copy of the JOA, including the accounting procedures attached
				  to the JOA showing the base rate used to escalate per the Council of Petroleum
				  Accounts Societies (COPAS) for the overhead expense; and
(5) Copies of the daily production reports
				  for the calendar year applied.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 17 - ECONOMICALLY AT-RISK LEASES › Section 710:45-9-84 - Refund procedure

Current through Vol. 41, No. 20, July 1, 2024
(a)
Issuance
				  of refund.
Upon certification by the Tax Commission, a refund of the
				  gross production taxes paid in the previous calendar year for the lease shall
				  be issued to the well operator or a designee after the eighteen (18) month
				  refund claim period has concluded.
(b)
Limitation of refund.
Beginning with calendar year 2022, and each subsequent year thereafter, the Tax
				  Commission is authorized to issue up to Ten Million Dollars ($10,000,000) in
				  economically at-risk refunds for each eligible calendar year. If the total
				  number of claims for an eligible calendar year exceed the refund cap, all
				  approved refunds will be issued at the refund payout rate.
(c)
Refund payout rate.
The
				  formula to be used for the percentage adjustment shall be Ten Million Dollars
				  ($10,000,000) divided by the amount of approved refund claims. For example, if
				  the total amount of refund claims for calendar year 2022 was Twenty Million
				  Dollars ($20,000,000), the amount of each refund would be reduced by
				  50%.
(d)
Assignment of a
				  designee.
If the refund is to be issued to a party other than the
				  recognized operator, a notarized affidavit, signed by the operator must be
				  submitted to the Tax Commission authorizing the designee to receive the
				  refund.
Added at 14 Ok Reg
					 2696, eff 6-26-97; Amended at 18 Ok Reg 869, eff 2-23-01 (emergency); Amended
					 at 18 Ok Reg 1330, eff 5-11-01; Amended at 23 Ok Reg 2816, eff
					 6-25-06
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 19 - PRODUCTION USING THREE DIMENSIONAL SEISMIC SHOOTS [REVOKED] › Section 710:45-9-90 - Scope of Part 19 [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Added at 18 Ok Reg
					 869, eff 2-23-01 (emergency); Added at 18 Ok Reg 1330, eff 5-11-01; Amended at
					 20 Ok Reg 2160, eff 6-26-03; Amended at 21 Ok Reg 1128, eff 5-13-04; Amended at
					 24 Ok Reg 2668, eff 7-12-07; Amended at 27 Ok Reg 2275, eff 7-11-10; Amended at
					 29 Ok Reg 523, eff 5-11-12
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 19 - PRODUCTION USING THREE DIMENSIONAL SEISMIC SHOOTS [REVOKED] › Section 710:45-9-91 - Definitions [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Added at 18 Ok Reg
					 869, eff 2-23-01 (emergency); Added at 18 Ok Reg 1330, eff
					 5-11-01
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 19 - PRODUCTION USING THREE DIMENSIONAL SEISMIC SHOOTS [REVOKED] › Section 710:45-9-92 - Qualification procedure [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Added at 18 Ok Reg
					 869, eff 2-23-01 (emergency); Added at 18 Ok Reg 1330, eff 5-11-01; Amended at
					 21 Ok Reg 1128, eff 5-13-04; Amended at 23 Ok Reg 2816, eff 6-25-06; Amended at
					 24 Ok Reg 2668, eff 7-12-07; Amended at 27 Ok Reg 2275, eff 7-11-10; Amended at
					 29 Ok Reg 523, eff 5-11-12
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 19 - PRODUCTION USING THREE DIMENSIONAL SEISMIC SHOOTS [REVOKED] › Section 710:45-9-93 - Rebates - Refund procedure [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Added at 18 Ok Reg
					 869, eff 2-23-01 (emergency); Added at 18 Ok Reg 1330, eff 5-11-01; Amended at
					 21 Ok Reg 1128, eff 5-13-04; Amended at 24 Ok Reg 2668, eff 7-12-07; Amended at
					 25 Ok Reg 2039, eff 7-1-08; Amended at 27 Ok Reg 2275, eff 7-11-10; Amended at
					 29 Ok Reg 523, eff 5-11-12
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 19 - PRODUCTION USING THREE DIMENSIONAL SEISMIC SHOOTS [REVOKED] › Section 710:45-9-94 - Applicable time periods [REVOKED]

Current through Vol. 41, No. 20, July 1, 2024
Added at 18 Ok Reg
					 869, eff 2-23-01 (emergency); Added at 18 Ok Reg 1330, eff 5-11-01; Amended at
					 20 Ok Reg 2160, eff 6-26-03
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 21 - MARKETING COSTS DEDUCTION › Section 710:45-9-100 - Scope of Part 21

Current through Vol. 41, No. 20, July 1, 2024
Producers of natural gas and casinghead gas who incur
					 certain marketing costs of the gas produced may deduct such costs from the
					 gross value when computing the gross value subject to gross production
					 tax.
Added at 25 Ok Reg
					 2039, eff 7-1-08
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 21 - MARKETING COSTS DEDUCTION › Section 710:45-9-101 - Definitions

Current through Vol. 41, No. 20, July 1, 2024
The following words and terms, when used in this Chapter,
					 shall have the following meaning unless the context clearly indicates
					 otherwise:
"Overhead costs"
mean the actual direct labor
					 incurred on the exempt facility compared to the total direct labor incurred by
					 the producer as a whole. Allowable overhead costs shall not exceed ten percent
					 (10%) of the total direct marketing costs and depreciation associated with the
					 marketing equipment.
"Marketing costs"
are non-production related
					 costs incurred by the producer to enable the transport of gas from the well to
					 the market, including costs for compressing, dehydrating and sweetening the gas
					 sold; and delivering the gas to the purchaser. Appendix A of this Chapter
					 provides a list of costs by category, identifying which costs are allowable as
					 marketing costs. Whether the cost is deductible or not will often depend upon
					 exactly how the item is used. If the cost is deductible, it must then be
					 determined whether the item should be expensed or depreciated.
"Marketing facilities"
include but are not
					 limited to flow lines or gathering systems from the separator to the
					 purchaser's transmission line, compressor stations, dehydration units, line
					 heaters (after the separator) and sweetening facilities.
Added at 25 Ok Reg
					 2039, eff 7-1-08
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 21 - MARKETING COSTS DEDUCTION › Section 710:45-9-102 - Qualifying criteria

Current through Vol. 41, No. 20, July 1, 2024
Qualified deductions of marketing costs shall comply with
					 the provisions of (1) through (4) of this Subsection. The marketing cost
					 deduction may be disallowed by the Tax Commission for failure to submit
					 sufficient documentation to support the deduction.
(1) Marketing costs shall not include any
				  costs incurred in the production of gas, oil or condensate or in the separation
				  therefrom of any product subject to gross production tax.
(2) Taxes shall be computed on gross
				  proceeds, including tax reimbursement, less the cost of gathering, compressing
				  and treating the gas sold.
(3)
				  Invoices for all costs claimed shall be made available upon request and must
				  clearly indicate the facility incurring the cost and include a detailed
				  description of the cost. If the invoice does not specify the cost was incurred
				  on allowable marketing equipment, a job/work ticket must accompany the invoice
				  describing the work that was done.
(4) Any claimed depreciable equipment must be
				  supported by documentation showing the original depreciable value. If the
				  depreciable equipment was purchased, the original invoice is required. If the
				  depreciable equipment was obtained through an acquisition of wells, documents
				  from the acquisition indicating how the value of the depreciable equipment was
				  determined must be provided.
Added at 25 Ok Reg
					 2039, eff 7-1-08
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 21 - MARKETING COSTS DEDUCTION › Section 710:45-9-103 - Calculation of marketing costs

Current through Vol. 41, No. 20, July 1, 2024
Marketing costs are determined by adding:
(1) Charges for depreciation of the marketing
				  facility being used, provided that, if the facility is rented, the actual
				  rental fee is added;
(2) A return
				  on the producer-owned investment equal to six percent (6%) per year on the
				  average depreciable balance;
(3)
				  Costs of direct or allocated labor associated with the marketing
				  facility;
(4) Costs of materials,
				  supplies, maintenance, repairs, and fuel associated with the marketing
				  facility; and
(5) Ad valorem taxes
				  paid on the marketing facility.
Added at 25 Ok Reg
					 2039, eff 7-1-08
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 21 - MARKETING COSTS DEDUCTION › Section 710:45-9-104 - Depreciation and return on investment

Current through Vol. 41, No. 20, July 1, 2024
(a)
				  Depreciation shall be determined by subtracting the salvage value from the
				  purchase price and multiplying the difference by the number of years of useful
				  life. Example of calculation:
(1) Purchase
				  price $100,000
(2) Minus salvage
				  value $10,000
(3) Equals
				  $90,000
(4) Divided by useful life
				  / 10
(5) Equals depreciation per
				  year $9,000
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 21 - MARKETING COSTS DEDUCTION › Section 710:45-9-105 - Reporting requirements

Current through Vol. 41, No. 20, July 1, 2024
(a) The
				  remitter of gross production tax shall enter the cost deduction taken for each
				  lease, each month, as a code 9 exemption on the monthly gross production tax
				  report. The deduction must be computed on the basis of the cost per MCF of
				  handling the gas sold. The total amount of annual depreciation, ad valorem
				  taxes and other allowed costs for the year divided by the number of MCF handled
				  through the system during that year equals the cost allowed per MCF
				  sold.
(b) Inasmuch as cost
				  deductions are to be reported on a monthly basis during the year the costs are
				  being incurred, estimates of costs should be made as accurately as possible. If
				  the costs reported are within 25% of the actual costs incurred, the amounts
				  reported for the succeeding year may be adjusted upward or downward to
				  compensate for the error. Should the error be more than 25%, amended reports
				  must be made and accompanied by either payment of additional tax, penalty and
				  interest or a claim for refund. Cost deductions and adjustments reported shall
				  never be allowed to result in a minus taxable value nor in a taxable value
				  greater than the gross proceeds. Records of all expenditures must be maintained
				  for examination by the Tax Commission.
Added at 25 Ok Reg
					 2039, eff 7-1-08
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 23 - SECONDARY AND TERTIARY RECOVERY PROJECTS › Section 710:45-9-110 - Scope of Part 23

Current through Vol. 41, No. 20, July 1, 2024
Exemption from the levy of gross production tax on
					 secondary and tertiary recovery projects set out in 68 O.S. Supp. 2022, §
					 1001(D) shall be determined according to the provisions of this
					 Part.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 23 - SECONDARY AND TERTIARY RECOVERY PROJECTS › Section 710:45-9-111 - Definitions

Current through Vol. 41, No. 20, July 1, 2024
The following words and terms, when used in this Part,
					 shall have the following meaning, unless the context clearly indicates
					 otherwise:
"Project start date"
means the date on which
					 the injection of liquids, gases, or other matter begins on a secondary and
					 tertiary recovery projects.
"Secondary and tertiary recovery projects"
means secondary and tertiary recovery projects approved or having an initial
					 project beginning date on or after July 1, 2022.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 23 - SECONDARY AND TERTIARY RECOVERY PROJECTS › Section 710:45-9-112 - Exemption

Current through Vol. 41, No. 20, July 1, 2024
(a) All production
				  which results from secondary and tertiary recovery projects shall be exempt
				  from gross production tax for a period not to exceed five (5) years from the
				  initial project start date or for a period ending upon the termination of the
				  secondary and tertiary recovery process, whichever occurs first.
(b) A refund for secondary and tertiary
				  recovery projects shall not be claimed until after the end of the fiscal year.
				  A fiscal year shall be deemed to begin on July 1 of one calendar year and shall
				  end on June 30 of the subsequent calendar year.
(c) Unless otherwise specified, no claim for
				  refund shall be filed more than eighteen (18) months after the first day of the
				  fiscal year in which the refund is first available. For example, secondary and
				  tertiary recovery projects refund claims for fiscal year 2022 can be filed
				  beginning July 1, 2023 until December 31, 2024.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 23 - SECONDARY AND TERTIARY RECOVERY PROJECTS › Section 710:45-9-113 - Qualification procedures

Current through Vol. 41, No. 20, July 1, 2024
(a)
Administrative approval and determination.
An operator seeking an
				  exemption for secondary and tertiary recovery projects from the gross
				  production tax shall first make application to the Oklahoma Corporation
				  Commission for a determination that such project qualifies and request a
				  determination of the start date.
(b)
Application to Oklahoma Tax
				  Commission.
Upon approval from the Oklahoma Corporation Commission, the
				  operator shall electronically submit an application for exemption to the Tax
				  Commission through OKTAP. The application shall include a copy of the approval
				  by the Oklahoma Corporation Commission; such approval shall include a
				  determination of the project start date.
(c)
Tax Commission may require
				  additional information.
For audit purposes, the Tax Commission may
				  require additional information, such as copies of the operator's federal income
				  tax return, joint interest billings, or other documentation regarding lease
				  production or expenses.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 23 - SECONDARY AND TERTIARY RECOVERY PROJECTS › Section 710:45-9-114 - Refund procedure

Current through Vol. 41, No. 20, July 1, 2024
(a)
Issuance
				  of refund.
Upon certification by the Tax Commission, a refund of the
				  gross production taxes paid in the previous fiscal year for the secondary and
				  tertiary recovery projects shall be issued to the well operator or a designee
				  after the eighteen (18) month refund claim period has concluded.
(b)
Limitation of refund.
Beginning with fiscal year 2023, and each subsequent year thereafter, the Tax
				  Commission is authorized to issue up to Fifteen Million Dollars ($15,000,000)
				  in secondary and tertiary recovery project refunds combined for each eligible
				  fiscal year. No entity, including subsidiaries of the entity, shall be
				  authorized to receive refunds claimed pursuant to this exemption that exceed
				  twenty percent (20%) of the cap. If the total number of claims for an eligible
				  fiscal year exceed the refund cap then all approved refunds will be issued at
				  the refund payout rate.
(c)
Refund payout rate.
The formula to be used for the percentage
				  adjustment shall be Fifteen Million Dollars ($15,000,000) divided by the amount
				  of approved refund claims. For example, if the total amount of refund claims
				  for calendar year 2022 was Thirty Million Dollars ($30,000,000), the amount of
				  each refund would be reduced by 50%.
(d)
Assignment of a designee.
If
				  the refund is to be issued to a party other than the recognized operator, a
				  notarized affidavit signed by the operator must be submitted to the Tax
				  Commission authorizing the designee to receive the refund.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 25 - PRODUCTION COMPLETED WITH THE USE OF RECYCLED WATER › Section 710:45-9-120 - Scope of Part 25

Current through Vol. 41, No. 20, July 1, 2024
Exemption from the levy of gross production tax on
					 production completed with the use of recycled water set out in 68 O.S. Supp.
					 2022 Section 1001(E) shall be determined according to the provisions of this
					 Part.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 25 - PRODUCTION COMPLETED WITH THE USE OF RECYCLED WATER › Section 710:45-9-121 - Definitions

Current through Vol. 41, No. 20, July 1, 2024
The following words and terms, when used in this Part,
					 shall have the following meaning, unless the context clearly indicates
					 otherwise:
"Production completed with the use of recycled
					 water"
means the production of oil, gas, or oil and gas from wells
					 drilled but not completed as of July 1, 2021, which are completed with the use
					 of recycled water on or after July 1, 2022.
"Recycled water"
means oil and gas produced
					 water and waste that has been reconditioned or treated by mechanical or
					 chemical processes into a reusable form.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 25 - PRODUCTION COMPLETED WITH THE USE OF RECYCLED WATER › Section 710:45-9-122 - Exemption and qualification

Current through Vol. 41, No. 20, July 1, 2024
(a)
Exemption.
Production completed with the use of recycled water
				  shall qualify for an exemption from the gross production tax from the date of
				  first sales for a period of twenty four (24) months. The exemption provided
				  shall be proportional to the percentage of the total amount of water used to
				  complete the well that is recycled water.
(b)
Administrative approval and
				  determination; order.
An operator seeking the exemption from gross
				  production tax shall make application to the Oklahoma Corporation Commission
				  for a determination that such project qualifies for the exemption.
(c)
Application to Oklahoma Tax
				  Commission.
Upon approval from the Oklahoma Corporation Commission, the
				  operator shall electronically submit an application for exemption to the Tax
				  Commission through OKTAP. The application shall include a copy of the Oklahoma
				  Corporation Commission Form 1002A, approved by the Oklahoma Corporation
				  Commission, identifying the volume and percentage of recycled water used in
				  completion.
(d)
Tax
				  Commission may require additional information.
For audit purposes, the
				  Tax Commission may require additional information, such as copies of the
				  operator's federal income tax return, joint interest billings, or other
				  documentation regarding lease production or expenses.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 9 - Exemptions and Exclusions › Part 25 - PRODUCTION COMPLETED WITH THE USE OF RECYCLED WATER › Section 710:45-9-123 - Refund procedure

Current through Vol. 41, No. 20, July 1, 2024
(a)
Issuance
				  of refund.
Upon certification by the Tax Commission, a refund of the
				  gross production taxes paid in the previous fiscal year for production
				  completed using recycled water shall be issued to the well operator or a
				  designee after the eighteen (18) month refund claim period has
				  concluded.
(b)
Limitation of
				  refund.
Beginning with fiscal year 2023, and each subsequent year, the
				  Tax Commission is authorized to issue up to Ten Million Dollars ($10,000,000)
				  in refunds for each eligible fiscal year. If the total number of claims for any
				  fiscal year exceed the refund cap, all approved refunds will be issued at the
				  refund payout rate.
(c)
Refund payout rate.
The formula to be used for the percentage
				  adjustment shall be Ten Million Dollars ($10,000,000) divided by the amount of
				  approved refund claims. For example, if the total amount of refund claims for
				  calendar year 2022 was Twenty Million Dollars ($20,000,000), the amount of each
				  refund would be reduced by 50%.
(d)
Assignment of a designee.
If the refund is to be issued to a party
				  other than the recognized operator, a notarized affidavit signed by the
				  operator must be submitted to the Tax Commission authorizing the designee to
				  receive the refund.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 11 - Transporters › Section 710:45-11-1 - Definitions

Current through Vol. 41, No. 20, July 1, 2024
In addition to terms defined in
				  710:45-1-2, the
				  following words and terms, when used in this Subchapter, shall have the
				  following meaning, unless the context clearly indicates otherwise:
"Load Ticket"
means a document or bill of lading
				  describing the source, contents and destination of any load of petroleum tank
				  bottoms, BS&W or other liquid hydrocarbon, salt water or any combination of
				  these products. A valid load ticket must contain the following
				  information:
(A) the name and address of the company owning or leasing the
				  transporting vehicle,
(B) the Gross Production Vehicle Permit number of the
				  vehicle,
(C) the date of transport,
(D) the name of the company or person owning the lease or
				  storage facility from which the product is being removed, or if different, the
				  name of the company or person owning the product before its removal,
(E) the OTC assigned production unit number of the lease or a
				  precise description of the location of non-lease storage from which the product
				  is removed,
(F) a description of the product being transported,
(G) the approximate number of barrels being
				  transported,
(H) the name and address of the person or firm who will
				  receive or store the load, and
(I) the driver's signature.
"Petroleum transporter"
means any person or firm
				  owning, leasing or otherwise controlling any vehicle or conveyance, other than
				  railroad tank cars or pipelines, used in the transportation of measurable
				  amounts of any product subject to Gross Production Tax. One percent (1%) or
				  more by volume shall be a measurable amount.
"Tank bottoms"
means the mixture of oil and
				  BS&W (basic sediment and water) that collects or settles in the bottom
				  portion of lease or other oil storage tanks. Tank bottoms may be called
				  BS&W. Salt water from salt water storage tanks shall not be shown on load
				  tickets as tank bottoms or BS&W unless it contains one percent (1%) or more
				  oil content by volume. [
See:
68 O.S. §
									1013
				  ]
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 11 - Transporters › Section 710:45-11-2 - Transporter license and permits

Current through Vol. 41, No. 20, July 1, 2024
The Audit Services Division of the Oklahoma Tax Commission
				  is authorized to issue and renew non-transferrable licenses and vehicle
				  permits, upon license and permit forms approved by the Commission, to
				  transporters, other than railroad or pipeline transporters, of any product
				  subject to the Oklahoma gross production tax, upon receipt of the
				  following:
(1) A properly completed
				Application for Transporters License, OTC Form 309-A;
(2) Completed and duly executed gross
				production tax bond in the amount of One Thousand Dollars ($1,000.00), which
				has been approved by the Commission; and
(3) Payment of a fee in the amount of One
				Hundred Fifty Dollars ($150.00) for each license issued, renewed or reinstated
				for the first vehicle permit, and Five Dollars ($5.00) for each additional
				vehicle permit. [
See:
68 O.S. § 1013]
Amended at 12 Ok Reg
				  2627, eff 6-26-95; Amended at 13 Ok Reg 3095, eff
				  7-11-96
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 11 - Transporters › Section 710:45-11-3 - Operation without license and permit prohibited

Current through Vol. 41, No. 20, July 1, 2024
No person or firm shall engage in transportation of any
				  product subject to Gross Production Tax prior to securing from the Tax
				  Commission a License to Transport Petroleum Liquid Hydrocarbons and a Gross
				  Production Vehicle Permit for each truck or other conveyance used in the
				  transportation of such products.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 11 - Transporters › Section 710:45-11-4 - Expiration and renewal

Current through Vol. 41, No. 20, July 1, 2024
Licenses to Transport Petroleum Liquid Hydrocarbons shall be
				  issued for periods of three (3) years and shall become invalid unless renewed
				  on or before the anniversary of their issuance. Gross Production Vehicle
				  Permits shall expire on the same date as the licenses under which they are
				  issued. No license or permit issued hereunder may be leased, sold or otherwise
				  transferred to any other person or firm.
Amended at 12 Ok Reg
				  2627, eff 6-26-95
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 11 - Transporters › Section 710:45-11-5 - Security required

Current through Vol. 41, No. 20, July 1, 2024
The security required by law to be posted by petroleum
				  transporters shall run to the State of Oklahoma and shall be for the purpose of
				  guaranteeing payment of all taxes and penalties and interest thereon, any
				  amount due under 68 O.S. §
									1003,
				  and any penalties imposed by the Commission under 68 O.S. §
									1010,
				  for failure or refusal to file any report required by statute or regulation, or
				  for late filing thereof or for failure or refusal to provide any information
				  demanded by the Commission. [
See:
68 O.S. §
									1013
				  ]
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 11 - Transporters › Section 710:45-11-6 - Display of license and permit; strict compliance; employer liability

Current through Vol. 41, No. 20, July 1, 2024
(a) The petroleum
				transporter license issued pursuant to this Subchapter shall be posted in the
				office of the licensee's place of business and the vehicle permits shall be
				displayed in the cabs of the vehicles for which they are issued. The licensee
				shall maintain in the office of the licensee's place of business a file of the
				vehicle permit duplicates. Licensees shall promptly notify the Audit Services
				Division of the sale or discontinuance of the use of any vehicle and surrender
				the permit therefor. They shall apply for a gross production vehicle permit for
				any additional vehicle before it is placed into use. Permits may not be
				exchanged from one vehicle to another. Licensees shall have painted or affixed
				by decalcomania process, in four-inch letters and numbers on the door of each
				vehicle, their company name and the gross production vehicle permit number,
				which shall be preceded by the initials "O.T.C."
(b) Every person or firm required to be
				licensed hereunder shall be responsible for seeing that the driver of any
				vehicle or conveyance owned or leased by the licensee and used in the
				transportation of any substance covered herein has read this regulation and
				complies with its requirements. The licensees of such vehicles shall be
				strictly accountable for the actions of their employees.
Amended at 13 Ok Reg
				  3095, eff 7-11-96
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 11 - Transporters › Section 710:45-11-7 - Load ticket or invoice required

Current through Vol. 41, No. 20, July 1, 2024
(a) No petroleum transporter licensee or
				employee thereof shall enter upon any oil or gas lease or other place where
				products covered by the provisions of this Subchapter are stored, remove any
				product or substance from any oil or gas lease or other place of storage,
				without the express consent of the lease operator or owner or an agent or
				employee of that operator or owner.
(b) Petroleum transporters shall not remove
				from any oil or gas lease or other place of storage within this state any
				product covered by 68 O.S. §
									1013
				unless prior to removal, such transporter shall prepare, in triplicate, an
				invoice or load ticket covering the product removed and leave a copy of that
				load ticket or invoice at the place from which it is removed. It shall be the
				duty of every lease operator to provide a receptacle on each lease to receive
				such load tickets or invoices.
(c)
				The driver of the truck or other conveyance used to remove any substance
				covered herein from any lease or other place of storage shall keep a copy of
				the load ticket in his possession at all times while the load is in transit and
				upon delivery of the load shall furnish a copy to the person or firm buying or
				receiving the load. After delivery, he shall give his copy to the person or
				firm licensed to operate the transporting vehicle.
(d) Every person or firm required to receive
				a copy of the load ticket or invoice shall keep such copies for not less than
				three years after the date of transportation.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 11 - Transporters › Section 710:45-11-8 - Required transporter reports

Current through Vol. 41, No. 20, July 1, 2024
Every person or firm who transports any oil, gas or other
				  liquid hydrocarbon or any deleterious substance as defined by 52 O.S. §
									139
				  shall maintain a log on OTC Form 323A of all loads transported and shall keep
				  such log for a period of three years from the date of transportation. Each
				  person or firm required to be licensed hereunder shall complete OTC Form 323A
				  listing each load of products regulated by 68 O.S. §
									1013
				  transported during the preceding month. Such report shall be submitted to the
				  Tax Commission upon request of the Tax Commission.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 13 - Refiners and Processors › Section 710:45-13-1 - Refiner or processor license

Current through Vol. 41, No. 20, July 1, 2024
(a) The Director of
				the Audit Services Division of the Oklahoma Tax Commission, or a designee, is
				authorized to issue non-transferrable licenses, upon the license form approved
				by the Tax Commission, to refiners, or other processors of any product subject
				to the Oklahoma gross production tax, upon receipt of the following:
(1) Completed and duly executed Request for
				Assignment of Production Unit Number, OTC Form 340, from the applicant;
				and,
(2) Completed and duly
				executed Application for Refiner's License to Process Petroleum Oil or
				Casinghead Gas, OTC Form 309-C from the applicant; and,
(3) Completed and duly executed gross
				production tax bond from the applicant, which has been approved by the Tax
				Commission.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 15 - Reclaimers and Reclaiming Operations › Section 710:45-15-1 - Additional definitions

Current through Vol. 41, No. 20, July 1, 2024
In addition to terms defined in
				  710:45-1-2 and
				  710:45-11-1, the following words
				  and terms, when used in this Subchapter, shall have the following meaning,
				  unless the context clearly indicates otherwise:
"Load ticket"
means a document or bill of lading
				  describing the source, contents and destination of any load of petroleum, tank
				  bottoms, BS&W or other liquid hydrocarbons or salt water or any combination
				  of these products. A load ticket shall not be considered valid unless it
				  contains every item required by the definition set out in
				  710:45-11-1.
"Petroleum transporter"
means any person or firm
				  owning, leasing or otherwise controlling the operation of any vehicle or
				  conveyance, other than railroad cars or pipelines, used in the transportation
				  of measurable amounts (1% or more by volume) of any product subject to the
				  gross production tax.
"Reclaimed oil"
means any petroleum, crude oil,
				  mineral oil or other liquid hydrocarbons recovered from tank bottoms, pits,
				  salt water or other source where such oil is not reported to the Tax Commission
				  by either its producer or purchaser of record, as shown by an Oklahoma Tax
				  Commission Form 340 on file with the Tax Commission, as part of the production
				  of the lease from whence it was produced. Oil or other liquid hydrocarbons
				  blended with reclaimed oil before, during or after the reclaiming process shall
				  be considered reclaimed oil.
"Reclaimer"
means any person or firm who buys,
				  salvages, reclaims or processes oil from the waste products associated with the
				  production of oil or gas, including but not limited to salt water and the
				  residue from oil storage tanks; any person operating a reclaiming plant, pit or
				  disposal facility where oil or other liquid hydrocarbons are salvaged or
				  recovered.
"Reclaiming Plant"
means any facility used for
				  the recovery or salvage of oil or other liquid hydrocarbons from oilfield
				  wastes or contaminated stocks by heating, flotation, chemical treatment, or
				  mechanical or other means except lease operations. It shall include any pit or
				  water disposal system where oil is recovered except where such oil is reported
				  to the Tax Commission, and gross production taxes paid thereon, as production
				  from the lease or leases from whence it was actually produced. No pit or
				  disposal well open to the public shall be exempt from the licensing
				  requirements contained herein.
"Tank bottoms"
means the mixture of oil and
				  BS&W (basic sediment and water) that collects or settles in the bottom
				  portion of lease and other oil storage tanks. Tank bottoms may be called
				  BS&W. Salt water from salt water storage tanks shall not be shown on load
				  tickets as tank bottoms or BS&W unless it contains one percent (1%) or more
				  oil content by volume.
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 15 - Reclaimers and Reclaiming Operations › Section 710:45-15-2 - Reclaimer licenses

Current through Vol. 41, No. 20, July 1, 2024
The Audit Services Division of the Oklahoma Tax Commission
				  is authorized to issue and renew non-transferrable licenses, upon license forms
				  approved by the Commission, to reclaimers of products subject to the Oklahoma
				  gross production tax, upon receipt of the following:
(1) A properly completed Application for
				Reclaimers License, OTC Form 309-B.
(2) A surety bond or other security approved
				by the Tax Commission, as guaranty for payment of all taxes, penalties and
				interest. Security shall be in the amount of Ten Thousand Dollars ($10,000.00)
				or three months tax liability, whichever is greater, for each license issued,
				except when issued for a salt water disposal well. Security for each license
				issued for a salt water disposal well shall be in the amount of Two Thousand
				Five Hundred Dollars ($2,500.00) or three months tax liability, whichever is
				greater. A person or firm having five or more licenses shall be required to
				post security in the total amount of Fifty Thousand Dollars ($50,000.00) or
				three months tax liability, whichever is greater; except that for persons or
				firms having five or more licenses for salt water disposal facilities, the
				security requirement shall be a total of Ten Thousand Dollars ($10,000.00) or
				three months tax liability, whichever is greater.
(3) A One Hundred Fifty Dollar ($150.00)
				three-year license fee for each new, renewed, or reinstated license.
				[
See:
68 O.S. §1015.1]
Amended at 12 Ok Reg
				  2627, eff 6-26-95; Amended at 13 Ok Reg 3095, eff
				  7-11-96
Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 45 - Gross Production › Subchapter 15 - Reclaimers and Reclaiming Operations › Section 710:45-15-3 - License required for each location

Current through Vol. 41, No. 20, July 1, 2024
(a) A separate reclaimers license shall be
				required for each plant location or salt water disposal facility operated.
				Licenses shall be valid for use only by the person or firm to whom issued and
				at the location specified by legal description on the license.
(b) Security posted shall be required to
				guarantee payment, to the limit of the amount posted, of the taxpayer's
				liability under all operations for which he is responsible for Gross Production
				Taxes and the other liabilities.