La. Admin. Code tit. 61 § I-5301

Current through Register Vol. 50, No. 8, August 20, 2024

Section I-5301 - Oilfield Site Restoration Fee

A. The Department of Revenue is responsible for collection of the oilfield site restoration fee imposed on the production of gas, oil, and condensate.

1. The fee shall be assessed on the same production that is taxed by the state's severance tax laws.

2. An annual fee, administered and collected by the Office of Conservation, is also imposed on nonproducing wells located within the state, except for temporarily abandoned or saltwater disposal wells in stripper fields.

B. Definitions. For the purposes of this Section, the following terms are defined.

Condensate-liquid hydrocarbons recovered by initial separation from a well classified as a gas well by the Office of Conservation or recovered from gas streams at drip points, plant inlet scrubbers, compressors, dehydrators, and metering stations.

Gas-gaseous phase hydrocarbons recovered by separation from either an oil well or gas well.

Oil-liquid hydrocarbons recovered by ordinary production methods from a well classified as an oil well by the Office of Conservation.

Operator of Record-the operator of record according to the Office of Conservation records.

Secretary-the Secretary of the Department of Revenue.

C. Due Dates and Delinquent Dates. The oilfield site restoration fee on gas, oil, and condensate is due quarterly on or before the twenty-fifth day of the second monthfollowing the quarter period and will be delinquent after this date and subject to interest, penalties, and costs as provided in Chapter 18, Subtitle II of Title 47.

D. Suspension and Reinstatement of the Fees

1. The state treasurer will certify to the secretary when the Oilfield Site Restoration Fee fund equals or exceeds $10 million. The secretary will notify all parties who are remitting the fee to cease payment of the fee on a specific date. All fees collected up to that date will be remitted on or before the first day of the second month following the date specified.

2. The state treasurer will certify to the secretary when the Oilfield Site Restoration Fee fund has fallen below $6 million. The secretary will notify all parties who are registered to collect and remit the fee to resume collection and payment of this fee starting with a specific date. The resumption date and fee due date will be specified on the notice.

E. Reports and Payment of the Fees

1. All returns and reports shall be made on forms prescribed by the secretary and furnished by the Department of Revenue, or on similar forms that have been approved for use by the secretary. Returns and reports shall be completed and filed in accordance with instructions issued by the secretary.

2. Any person who severs, purchases, or processes gas, oil, distillate, condensate, or similar natural resources is required to furnish information necessary for the proper enforcement and verification of the fees levied in R.S. 30:87.

3. Every operator of record of producing oil and gas wells must submit a return and make payments of the fees imposed by R.S. 30:87. Purchasers of oil and gas may make payment for the operator of record and their respective working-interest owners.

La. Admin. Code tit. 61, § I-5301

Promulgated by the Department of Revenue and Taxation, Severance Tax Division, LR 20:197 (February 1994), amended LR 23:78 (January 1997), LR 32:1250 (July 2006).

AUTHORITY NOTE: Promulgated in accordance with R.S. 30:87.