Texas Administrative Code
Title 16 - ECONOMIC REGULATION
Part 1 - RAILROAD COMMISSION OF TEXAS
Chapter 3 - OIL AND GAS DIVISION
Section 3.103 - Certification for Severance Tax Exemption for Casinghead Gas Previously Vented or Flared
Current through Reg. 49, No. 12; March 22, 2024
(a) Purpose. The purpose of this section is to provide a procedure by which an operator may obtain commission certification that the operator markets gas that was previously released into the air for 12 months or more pursuant to § RSA 3.32 of this title (relating to Gas Well Gas and Casinghead Gas Shall Be Used for Legal Purposes). Certification under this section is voluntary.
(b) Definitions. The following terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:
(c) Eligibility. An operator shall be eligible to receive the tax exemption on marketed casinghead gas for the life of an oil well or oil lease as listed on the oil proration schedule at the time an application for certification is filed under this rule if:
(d) Certification.
(e) Application to the Comptroller. After the commission issues the certification provided for in subsection (d) of this section, the operator may apply to the Comptroller of Public Accounts to receive the tax exemption.
(f) Termination of Authorization to Release Gas. On the date the commission issues the certification provided for in subsection (d) of this section, either by administrative action or by commission order, the volume of casinghead gas authorized to be released into the air as an exception obtained pursuant to § RSA 3.32<subdiv>(h)</subdiv> of this title shall be reduced to the volume of casinghead gas not subject to the certification. If all of the volume of casinghead gas authorized to be released under an exception is certified for purposes of the tax exemption, the exception shall no longer apply, and shall automatically terminate as of the date of certification.