Gas

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

The tax rate for natural gas and equivalent gas volumes of natural gasoline, casinghead gasoline, and other natural gas liquids per 1,000 cubic feet at a base pressure of 15.025 pounds per square inch absolute and at 60 degrees Fahrenheit is adjusted annually on July 1 and may never be less than 7 cents.

Type Rate
a. Full Rate – 7/1/16 to 6/30/17 [R.S. 47:633(9)(d)(i)] $0.098 per MCF
b. Full Rate – 7/1/17 to 6/30/18 [R.S. 47:633(9)(d)(i)] $0.111 per MCF
c. Incapable oil-well gas [R.S. 47:633(9)] $0.03 per MCF
d. Incapable gas-well gas [R.S. 47:633(9)] $0.013 per MCF
e. Produced water-full rate 7/1/15 to 6/30/16 [R.S. 47:633.5(C)(2)] $0.126 per MCF
f. Produced water-full rate 7/1/16 to 6/30/17 [R.S. 47:633.5(C)(2)] $0.078 per MCF
g. Produced water-incapable oil-well gas [R.S. 47:633.5(C)(2)] $0.024 per MCF
h. Produced water-incapable gas-well gas [R.S. 47:633.5(C)(2)] $0.0104 per MCF

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.