Texas Administrative Code
Title 34 - PUBLIC FINANCE
Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS
Chapter 3 - TAX ADMINISTRATION
Subchapter B - NATURAL GAS
Section 3.26 - Purchaser and/or Processer Reporting Requirements

Universal Citation: 34 TX Admin Code § 3.26

Current through Reg. 50, No. 13; March 28, 2025

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1) First purchaser--Any person purchasing gas and/or condensate from a producer.

(2) Processor--Any person processing gas, under contract or other arrangement with a producer, for the purpose of extracting liquid hydrocarbons or other products from the gas.

(b) Persons required to file the purchaser/processor report.

(1) All first purchasers taking delivery of gas on the lease from which the gas was produced must file the purchaser/processor report. All first purchasers of condensate must file the purchaser/processor report.

(2) All processors processing gas and taking delivery on the lease from which the gas was produced must file the purchaser/processor report.

(c) Information required to be reported.

(1) The first purchaser must report the following:
(A) the name of the operator of the lease, unless the purchase is being made from an interest owner taking in-kind, in which case the name of the interest owner shall be reported;

(B) the name of the lease;

(C) the volume purchased;

(D) the entire value paid to the producer excluding severance tax reimbursement; and

(E) the value upon which the purchaser remits tax.

(2) The processor must report the following:
(A) the name of the operator of the lease, unless gas is being processed for an interest owner taking in-kind, in which case the name of the interest owner shall be reported;

(B) the name of the lease;

(C) the total volume processed;

(D) the entire value, excluding severance tax reimbursement, paid to the producer by the processor for the gas stream processed;

(E) the value upon which the processor remits tax; and

(F) if products are being taken in-kind by the producer.

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