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. 42, No. 1, September 16, 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1This emergency action expired without being superseded by a permanent action.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.
