Oil

FAQs and Instructions for correctly reporting LDR and DNR codes on the Oil and Gas Severance Tax Returns (Updated 01/30/2008)

Who must file

A return must be filed by each severer who withholds tax from royalty payments and each purchaser who withholds tax from any amount due a seller or owner if the tax has not yet been paid.

Rate of tax

Oil/Condensate/Similar Natural Resources Per barrel of 42 gallons
Full rate oil/condensate 12.5% of value
Incapable oil rate [R.S. 47:633(7)(b)] 6.25% of value
Stripper oil rate * [R.S. 47:633(7)(c)] 3.125% of value
Reclaimed oil [R.S. 47:648.21] 3.125% of value
Produced water-full rate [R.S. 47:633.5(C)(1)] 10.0% of value
Produced water-incapable oil rate [R.S. 47:633.5(C)(1)] 5.0% of value
Produced water-stripper oil rate [R.S. 47:633.5(C)(1)] 2.5% of value

* Stripper oil is exempt as long as the average posted price for a 30-day period is less than $20 per barrel.

Date Tax Due

Tax returns must be filed on or before the twenty-fifth day of the second month following the month to which the tax is applicable.

Report

The severer must report the kind and quantity of natural resources severed, the names of the owners, the portion owned by each, the location of each natural resource, and the places where severed.

The purchaser must report the names and addresses of all sellers and the quantity and gross price paid for each natural resource.

These reports are due monthly on the same date as the tax.