Texas Administrative Code
Title 34 - PUBLIC FINANCE
Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS
Chapter 3 - TAX ADMINISTRATION
Subchapter C - CRUDE OIL PRODUCTION TAX
Section 3.32 - Exemption of Oil Incidentally Produced in Association with the Production of Geothermal Energy

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

(b) For each oil well qualifying under this section, the comptroller will require the following information from the operator of the well.

(c) Producers and purchasers reporting a geothermal energy exemption shall designate the oil as being qualified geothermal energy exemption oil, according to instructions contained on the crude oil tax reports.

(d) If the tax is paid at the full rate provided by Tax Code, Chapter 202, on oil produced on or after the effective date of the tax exemption but before the date the comptroller approves an application for the tax exemption, the operator is entitled to a credit on taxes due under Tax Code, Chapter 202, in an amount equal to the credit approved for that period. To receive a credit, the operator or the party remitting the tax must apply to the comptroller by filing amended reports for each well. If a party other than the operator has remitted the tax, the operator must provide the party remitting the tax a copy of the comptroller's approval letter for the exemption identifying the lease that qualifies for the tax exemption.

(e) If the amount of oil produced is greater than 10 barrels of oil per day of production per well for a three-month period after the exemption beginning date, the exemption will be revoked.