Oklahoma gross production tax law allows for a reduction in the costs incurred to get natural gas to market. An operator must calculate the gas marketing expenses incurred on a well by well basis and submit a refund request to the Oklahoma Tax Commission. Since it is common practice in Oklahoma for the purchaser to withhold the gross production tax from the seller and file the monthly report with the Oklahoma Tax Commission, the operator must obtain permission from the purchaser to amend the report that they originally filed. To further complicate matters, the Oklahoma Tax Commission requires operators to provide them with copies of the gas purchase statements they received from the purchaser.
Most operators outsource this task due to the before mentioned hurdles and the time it takes to come up with the deductible costs.
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