Oil Site Restoration

Who Must File?

Every operator of record of producing oil and/or gas wells must submit a return and make payments of the fees imposed by LA R.S. 30:87.  Purchasers of oil and/or gas may make payment on behalf of the operator of record and their respective working-interest owners. Purchasers who pay the fee on behalf of working-interest owners, should provide them with notice of the date and amount of payment.

Rate of Fee

The fee for wells that produce crude oil and condensate is as follows:

1. The fee shall be one and one-half cents per barrel on crude oil and condensate if the price of oil is at or below sixty dollars per barrel.
2. The fee shall be three cents per barrel on crude oil and condensate if the price of oil is above sixty dollars and at or below ninety dollars per barrel.
3. The fee shall be four and one-half cents per barrel on crude oil and condensate if the price of oil is above ninety dollars per barrel.

The fee for natural gas and casing head gas is as follows:

1. The fee shall be three-tenths of one cent per thousand cubic feet.

Date Tax Due

Tax returns must be filed quarterly and is due on or before the twenty-fifth day of the second month following the close of the taxable period.

Reporting

For Oil and Condensate, the fee is assessed on gross production and is payable upon the initial disposition. See form R-9050 Oilfield Site Restoration Fee Return – Oil and Condensate Production and related instructions for more information.

For Gas, the fee is assessed on gross production prior to any reductions for exclusions.  See form R-9051 Oilfield Site Restoration Fee Return – Natural Gas Production and related instructions for more information.