Replies to This Discussion

Permalink Reply by FXEF on August 31, 2011 at 14:27

Wonderland,

 

This link may be helpful and give you some insight and direction.

 

http://www.rrc.state.tx.us/programs/og/presenttax.php

Permalink Reply by Mark on August 31, 2011 at 16:59

I am guessing that the bp wells are completed in the cotton valley and if so automatically qualify for an exemption, zero to a lower tax rate less than 7.5% for 10 years, however, you must apply for it and you have several years to file for this. Based on the delay of rrc approval it can take almost a year to get before refund can be applied for. There is a website you can use to see if a well is getting a reduced rate. Just need I'd #. Will send link tomorrow when I get to office.

Permalink Reply by Ben Elmore on September 1, 2011 at 3:28

The class action was filed in the Eastern District of Texas in 2008 against over 100 oil companies.  The basis for it was that the companies were receiving severance tax exemptions (primarily high cost/tight sand gas), but were not giving the royalty owners their share of the exemption.  The Texas Comptroller's website has a link where you can search by lease/well name and determine if the well was given an exemption and how much the operator received from same.  Here is the link  https://ecpa.cpa.state.tx.us/cong/leaseNameSearchForward.do;jsessio...

If you find the wells BP operates on which it pays you royalties, and you compare the time periods BP received tax exemptions on the wells to your check stubs, you can determine if they gave you your share of the benefit.  If they didn't, you can calculate how much they owe you based on the time period they had the exemption.  Then decide if it is worth opting out or taking the $100.  I would expect your share of the class action settlement of $100 would be less than what you are actually owed, but it is up to you to decide if it is worth pursuing BP yourself.

Permalink Reply by Wonderland on September 1, 2011 at 4:45

Ben,

The site you linked me to is one which you must log in to see--and says to log in you must be responsible for filing the returns.  Do you have a different link for the same info?

Permalink Reply by Ben Elmore on September 1, 2011 at 5:02

Sorry about that.  Not sure why it is doing that.  When you follow the link, click on the "Crude Oil & Natural Gas" title at the top.  At the next page you will see a list of links on the left side.  Click on "By Lease Name"