Freeport McMoRan is now charging a "conservation tax" against my royalty payments. I cannot find any reference to this conservation tax on line. Are any of you being charged this tax? Freeport McMoRan told me they previously rolled this tax into the severance tax charge but are now breaking it out as a separate line item. The charge is small but if Freeport deems it important enough to charge me then I deem it important enough to try to find out where the tax is coming from and how it is calculated.
I'm not familiar with a "conservation tax" but if it is indeed part of the severance tax assessment it should appear in the regulations. Use this link and click on Severance Tax. I did a quick search and did not find a mention of that tax. A thorough reading of the entire statute might reveal some detail but a quick search by key word did not find anything for "conservation tax".
Thanks, Skip. I have read a LOT on the DNR website but have found nothing referring to conservation tax. I did find reference to "Oilfield Site Restoration Fee Increased" on Louisiana Dept. of Revenue's site at:
I think I am going back to Freeport to ask for a specific tax law or statute.
You're welcome. I look forward to hearing the answer you receive.
On a lighter note, who would have imagined four years ago that "accounting" and "book keeping" would become the most important departments of some O&G companies:). Kathy