Louisiana Administrative Code
Title 61 - REVENUE AND TAXATION
Part V - Ad Valorem Taxation
Chapter 9 - Oil and Gas Properties
Section V-905 - Reporting Procedures

Universal Citation: LA Admin Code V-905

Current through Register Vol. 50, No. 9, September 20, 2024

A. Oil, Gas, Associated Wells, and Related Production Equipment (Production Train), see guidelines adopted by the Louisiana Tax Commission and report in accordance with form requirements or as otherwise outlined in this chapter.

1. A data template corresponding to a DCF model as adopted by the Louisiana Tax Commission shall be completed by the operator with the following information:
a. level of detail being provided (well/lease/LUW, etc.) and appropriate identifying name(s), number(s), LUW codes, etc;

b. primary product being produced (oil or gas);

c. total decimal ownership of the working interest (WI) in the assets to be assessed (typically +/- 0.75000);

d. total number of wells to be represented in the DCF;

e. average total depth of the wells represented in the DCF;

f. previous year average price (dollars per barrel for oil or dollars per mcf for gas);

g. severance tax rate(s) being assessed against the well(s) by the Louisiana Department of Revenue;

h. recurring direct operating expense commensurate to the level of detail (well/lease/LUW) represented in the DCF;

i. amount of capital expenditures (capex) anticipated to be incurred as of the assessment date (January 1) and cause and timing thereof;

j. salvage value of specialized leasehold equipment, if any, not considered part of a typical production train.

B. Surface Equipment

1. See guidelines adopted by the Louisiana Tax Commission regarding the use of Table 907.D-7 regarding depreciable life and Table 907.C-4 regarding depreciation rate. The detail of typical equipment included in the production train need not be listed on or with the LAT-12. For additional or ancillary equipment not considered as part of the production train, various sizes, items, etc. may not be commingled into one category or value. Property must be grouped, totaled and included in summary according to the following property classes:

2. Property Class #1-Oil and Gas Equipment - major items of oil and gas equipment not included and assessed as part of the well are shown as a schedule item. For other equipment (not included as a schedule item), year of construction or purchase, original cost and composite multiplier must be shown and used to determine fair market value. Refer to composite multipliers in the general business section (Chapter 25) of these guidelines.

3. Property Class #2-Tanks-see schedule for type, size, unit cost, etc.

4. Property Class #3-Inventories
a. may be reported as a total accumulated cost in the fair market value column - with property description and on appropriate LAT form;

b. Material AND Supplies:
i. located on lease or facility-use LAT-12 form;

ii. located at a public or private storage-use LAT-5 form (Sec. 1).

c. Pipe Stock-report footage or tonnage in unit column (indicating measurement) cost per unit measurement in unit value column and extend total fair market value.
i. located on lease or facility - use LAT-12 form.

ii. located at a public or private storage - use LAT-5 form (Sec. 1).

d. Pipe Stock-exempt under La. Const., Art. VII, §21(D-3)-use LAT-5 form (Sec. 1).

5. Property Class #4-Field Improvements- docks, lease buildings, equipment sheds and buildings, warehouses, land and leasehold improvements, etc.-furnish year constructed and cost. Use composite multiplier from appropriate table on original cost, and extend fair market value for each.

6. Property Class #5-Other Property-on lease or producing facilities, but not included in the above classes viz:
a. Barges-used as work, utility, submerged platforms, etc.-report type, size, year of purchase, cost and use composite multiplier from the appropriate table;

b. Furniture and Fixtures-may be reported as a total cost with the composite multiplier from the appropriate table on original cost. Report such property on LAT-12 form (Oil and Gas Property).

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:1837 and R.S. 47:2323.

Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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