Severance

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What is the severance tax rate for natural gas?

Louisiana Revised Statute 47:633(9) provides that the tax rate for natural gas and equivalent gas volumes of natural gasoline, casinghead gasoline, and other natural gas liquids including ethane, methane, butane or propane is 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.

The tax rates for the current years are as follows:

Full-Rate Per MCF
7/07 through 6/08 $.269
7/08 through 6/09 $.288
7/09 through 6/10 $.331
7/10 through 6/11 $.164
7/11 through 6/12 $.164
7/12 through 6/13 $.148
7/13 through 6/14 $.118
7/14 through 6/15$.163


Incapable oil well gas $.03


Incapable gas well gas $.013

When the natural gas severance tax rate is adjusted annually on July 1st, which month is the first month affected by the change?

The new natural gas severance tax rate applies to July gas production, which is reported and the tax paid on or before September 25th.

What are the Parish Codes that need to be provided on the various Severance Tax reporting forms?

The codes assigned to the various parishes are:

CODE PARISH CODE PARISHCODEPARISH
01ACADIA23IBERIA45ST CHARLES
02ALLEN24IBERVILLE46ST HELENA
03ASCENSION25JACKSON47ST JAMES
04ASSUMPTION26JEFFERSON48ST JOHN
05AVOYELLES27JEFFERSON DAVIS49ST LANDRY
06BEAUREGARD28LAFAYETTE50ST MARTIN
07BIENVILLE29LAFOURCHE51ST MARY
08BOSSIER30LASALLE52ST TAMMANY
09CADDO31LINCOLN53TANGIPAHOA
10CALCASIEU32LIVINGSTON54TENSAS
11CALDWELL33MADISON55TERREBONNE
12CAMERON34MOREHOUSE56UNION
13CATAHOULA35NATCHITOCHES57VERMILION
14CLAIBORNE36ORLEANS58VERNON
15CONCORDIA37OUACHITA59WASHINGTON
16DESOTO38PLAQUEMINES60WEBSTER
17EAST BATON ROUGE39POINTE COUPEE61WEST BATON ROUGE
18EAST CARROLL40RAPIDES62WEST CARROLL
19EAST FELICIANA41RED RIVER63WEST FELICIANA
20EVANGELINE42RICHLAND64WINN
21FRANKLIN43SABINE65UNKNOWN
22GRANT44ST BERNARD
Who is responsible for paying the oilfield site restoration fee?

Louisiana Revised Statute 30:87 imposes the oilfield site restoration fee. The fee for full rate oil and gas production is one and one-half cents per barrel on crude oil and condensate or three-tenths of one cent per 1,000 cubic feet on natural gas and casing head gas. The fee for reduced rate oil and gas production such as stripper wells and incapable wells is in the same proportion to the oil or gas full rate production fees as the reduced rate severance tax is to the full rate severance tax.

The oilfield site restoration fee must be paid by the operator of record. Louisiana Administrative Code 61:I.5301.E.3 provides that “Every operator of record of producing oil and/or gas wells must submit a return and make payments of the fees imposed by R.S. 30:87. Purchasers of oil and/or gas may make payment for the operator of record and their respective working-interest owners."