Louisiana oil severance tax rate

I would like to know what is the Louisiana oil severance tax rate (percent) as identified on a monthly check statement?

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Permalink Reply by Terry on August 31, 2013 at 8:45

If One eighth of what you are paid, it would seem that the State of La would have an interest in the price paid being correct.  Do they ever get involved with gas prices being paid on a lease?  Is the State's payment dependent on your lease terms?

Permalink Reply by GoshDarn on August 31, 2013 at 18:15

1/8th or 12.5% is the:  "full rate oil/condensate" for La. severance tax.  Also, the NG rate is different than the oil tax rate.

But certain wells, e.g., stripper wells, are only required to pay 3.125%.

Here's the actual tax percentages for the variety of wells.

Oil/Condensate/Similar Natural Resources Per barrel of 42 gallons
Full rate oil/condensate 12.5% of value
Incapable oil rate [R.S. 47:633(7)(b)] 6.25% of value
Stripper oil rate* [R.S. 47:633(7)(c)] 3.125% of value
Reclaimed oil [R.S. 47:648.21] 3.125% of value
Produced water-full rate [R.S. 47:633.5(C)(1)] 10.0% of value
Produced water-incapable oil rate [R.S. 47:633.5(C)(1)] 5.0% of value
Produced water-stripper oil rate [R.S. 47:633.5(C)(1)] 2.5% of value

* Stripper oil is exempt as long as the average posted price for a 30-day period is less than $20 per barrel.


landownerPermalink Reply by Martin on September 1, 2013 at 10:24

Gosh Darn --

   What is the rate for natural gas?

Permalink Reply by GoshDarn on September 1, 2013 at 14:14

Martin:

For La. severance tax, the full NG rate is:

a. Full Rate - 7/1/13 to 6/30/14 [R.S. 47:633(9)(d)(i)] $.118 per MCF

But sometimes on royalty statements there may be a varying rate per the difference in production volumes and the various NG types being produced.

Rate of tax

The tax rate for natural gas and equivalent gas volumes of natural gasoline, casinghead gasoline, and other natural gas liquids per 1,000 cubic feet at a base pressure of 15.025 pounds per square inch absolute and at 60 degrees Fahrenheit is adjusted annually on July 1 and may never be less than 7 cents.

Type Rate
a. Full Rate - 7/1/13 to 6/30/14 [R.S. 47:633(9)(d)(i)] $.118 per MCF
b. Incapable oil-well gas [R.S. 47:633(9)] $.03 per MCF
c. Incapable gas-well gas [R.S. 47:633(9)] $.013 per MCF
d. Produced water-full rate 7/1/13 to 6/30/14 {R.S. 47:633.5(C)(2)] $.094per MCF
e. Produced water-incapable oil-well gas [R.S. 47:633.5(C)(2)] $.024 per MCF
f. Produced water-incapable gas-well gas [R.S. 47:633.5(C)(2)] $.0104 per MCF

landownerPermalink Reply by Martin on September 1, 2013 at 15:24

Thank you, GoshDarn.


landownerPermalink Reply by rupie on September 5, 2013 at 5:41

What I read is that they have the ability to change the NG Tax rate every six months. Is this true? At one point they said the severance tax rate was 16%..

Permalink Reply by a on September 5, 2013 at 6:12

the natural gas rates change every year based on an index price. the la dept of revenue website explains what the tax rate is based on.

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