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The Oregon Administrative Rules contain OARs filed through October 15, 2014
 
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DEPARTMENT OF REVENUE

 

DIVISION 324

OIL AND GAS TAX

 

150-324.050-(A)

Applicability Limited to Natural Gas Production

OAR 150-324.050-(A) to OAR150-324.050-(F) are applicable to natural gas production within the State of Oregon.

Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 324.050
Hist.: 12-31-81

150-324.050-(B)

Production Unit for Calculation and Reporting

(1) The "net gas produced and saved" from an individual well is the total gas produced and saved from that well less that gas used for purposes enumerated in ORS 324.110(3).

(2) Production of natural gas shall be measured and reported in therms. One therm equals 100,000 British Thermal Units (BTUs).

Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 324.050
Hist.: 12-31-81

 

150-324.050-(C)

Gross Sales Value Subject to Production Tax

(1) "Sales price" is the per therm price due the producer at the well head determined asfollows: Sales Price (or well head price) = Commodity Price less Delivery Charge

(2) Definitions:

(a) "Commodity Price" is the Oregon Public Utility Commissioner approved price which the using gas distribution company may pay for natural gas delivered to its lines.

(b) "Delivery Charge" is the cost of moving and processing the natural gas from the originating well headt o the lines of the using gas distribution company.

(3) Excluded from the delivery charge is any allowance for anticipated gas production tax.

(4) "Monthly unadjusted gross sales value" is the product of the therms of net gas produced and saved from a well during a month, less the therm equivalent of exempt royalty or other interest owned by municipal or political subdivisions, times the sales price.

(5) "Quarterly unadjusted gross sales value" is the sum of monthly unadjusted gross sales values for the months in the calendar quarter for which the tax is being determined.

(6) The gross sales value subject to production tax is the quarterly unadjusted gross sales value less $3,000 as provided in ORS 324.080.

Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 324.050
Hist.: 12-31-81; RD 6-1986, f. & cert. ef. 12-31-86

 

150-324.050-(D)

Purchaser's Filing Responsibility

(1) "Purchaser" means the first purchaser of the gas regardless of the physical point at which ownership changes.

(2) A purchaser of gas shall remit the tax due for the calendar quarter of purchase to the department on or before May 15, August 14, November 14 and February 14 following the end of the first through fourth quarters of the calendar year respectively.

(a) A producer or other agent may pay the production tax on behalf of any or all purchasers of the taxable natural gas.

(A) Such producer payments must identify the purchaser on whose behalf payment is being remitted and include a natural gas production tax return showing the calculation of the tax for each purchaser for whom payment is made.

(B) Responsibility for timely payment remains with the purchaser as provided in ORS 324.110.

(C) The purchaser shall be responsible for payment of interest in the event of late production taxpayment.

(b) A producer or other agent who is paying the production tax on behalf of any purchaser may also file, with the natural gas production tax return and payment, the purchaser's data report.

(A) If the producer files the purchaser's data report, the purchaser's data report need not duplicate any information contained in the producer's data report for the same calendar quarter provided that both reports pertain to the same gas.

(B) Responsibility for timely filing of the purchaser's data report remains with the purchaser as provided in ORS 324.120.

(3) A purchaser shall file with the quarterly tax payment the following reports using forms prescribed by the department:

(a) Natural gas production tax return showing calculation of tax which is being paid for the calendar quarter.

(b) Purchaser's data report for the quarter. A purchaser may file, in lieu of the department data report, a true verified copy of the regular settlement sheet in use by the purchaser if it contains all the information required in ORS 324.120.

(4) A purchaser's data report shall be made for each well which produced any gas purchased by the reporting purchaser during the quarter covered by the report.

(5) It is the responsibility of the purchaser to obtain from the producer on a timely basis the required data so that the purchaser's data report may be filed with the quarterly remittance of the production tax.

Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 324.050
Hist.: 12-31-81

 

150-324.050-(E)

Producers Filing Responsibility

(1) A producer of gas shall remit to the department on or before May 15, August 14, November 14 and February 14 following the end of the first through the fourth quarter of the calendar year respectively the tax due on any net gas produced and saved during the calendar quarter but not sold.

(2) A producer of gas shall file a natural gas production tax return with the remittance of tax due for gas produced and saved but not sold.

(3) A producer of gas shall file a producer's data report with the department on or before May 15, August 14, November 14, and February 14 following the end of the first through fourth quarters of the calendar year respectively.

(4) A producer's data report shall be made for each well in production at any time during the calendar quarter covered by the report. An explanatory statement shall be included for each well reported in production during the preceding calendar quarter and not in production during the quarter covered by the report.

(5) It is the responsibility of the producer to provide to the purchaser on a timely basis that information needed by the purchaser to prepare the report required in ORS 324.120.

Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 324.050
Hist.: 12-31-81

 

150-324.050-(F)

Credit for or Refund of Ad Valorem Taxes Paid

(1) Certain ad valorem taxes paid shall be allowed as a credit against the production tax imposed. ORS 324.090 identifies those properties whose ad valorem tax may qualify for credit. The termination point for qualifying machinery, appliances and equipment is the discharge valve at a producing well.

(2) Ad valorem taxes paid shall be prorated and claimed as credits equally over the calendar quarters of the ad valorem tax year for which returns are filed.

(3) The purchaser, the producer in the event that gas is not sold at the time of production or the producer or other agent acting on behalf of any or all purchasers may claim credit for qualifying ad valorem taxes paid on the quarterly natural gas production tax return.

(a) The credit claimed for acalendar quarter is limited to the lesser of either:

(A) The production tax duefor the quarter; or

(B) The ad valorem tax paid for the quarter of production on the qualified property used in production plus any credit carry forward in the same tax year.

(b) Claims for credit must be supported by sufficient data to identify the property upon which the advalorem tax was levied and the amount of tax on each property. Interest orother costs resulting from ad valorem tax delinquencies are not allowable credits.

(c) The department will makewhatever review is necessary to validate ad valorem tax creditsclaimed.

(d) It is the responsibilityof the producer to ensure that the entity preparing the quarterly natural gas production tax return is informed on a timely basis of the ad valorem tax credit to be claimed and that data in support of the credit claimed is available for filing with the return.

(e) Any adjustment to the amount of credit claimed will be made by refund of tax paid or collection of additional tax.

(4) Credit for ad valorem tax will not be allowed for any calendar quarter for which production tax has not been paid.

(5) Carry forward of credit or refund deficiencies, if any, resulting from insufficient production will not be allowed beyond the ad valorem tax year.

Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 324.050
Hist.: 12-31-81

 

Sales Tax on Lubricating Oil and Grease

150-324.340(Note)

Application of Rules Under ORS 324.340(Note) and ORS 465.101 through 465.131

For the purpose of ORS 324.340(Note) and ORS 465.101 through 465.131, the administrative rules under ORS 465.101 through 465.131, shall apply to the collection of all fees imposed by ORS 324.340(Note), and 465.101 through 465.131.

Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 324.340
Hist.: RD 1-1989(T), f. & cert. ef. 8-31-89 thru 12-31-89; RD 4-1989, f. 12-18-89, cert. ef. 12-31-89

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