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William, there are a number of ways that the state severance tax on natural gas changes periodically. The rate is adjusted annually mid year by formula set by the legislature. I'll put a link below.
A well completed in the fist half of a year will have a different rate than one completed in the second half even if those completion dates are only weeks apart. Then there are the different classifications for gas wells based on their production volume - capable, incapable and stripper. Different rates apply to each class. I seldom look at severance tax questions because they are very rare here on GHS.com.
https://dam.ldr.la.gov/lawspolicies/RIB%2025-015%20Natural%20Gas%20...
I am not sure the gas companies know how to apply the rates. I have several wells that are low flow - Each less than 3,000 MCF/month.
They are split 50/50 between TGNR and EXCO. TGNR is charging the 10.52 cents. EXCO is charging the orphan rate of 1.315 cents for the same well. My share is small and it would cost more to sent a letter tot TGNR than it's worth (They never respond to email)
TGNR is missing out on lower production costs. EXCO has been around a lot longer and knows how to report their well status and reap the benefits. Sometimes operators' refusal to engage with mineral lessors can be a negative. Tokyo Natural Gas is behind the curve on severance tax reporting.
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Posted by don burkett on September 17, 2026 at 10:08
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