Drill Deeper

Drill Deeper

News and Updates on Oil & Gas Legal Issues

Category Archives: Tax

Subscribe to Tax RSS Feed

Louisiana Department of Revenue Attempts to Rewrite Crude Oil Purchase Agreements in an Effort to Collect More Severance Taxes

Posted in Legal Updates, Tax
The Louisiana Department of Revenue and Louisiana oil producers continue to battle over the imposition of severance tax on oil and condensate produced in Louisiana.  Gordon Arata Montgomery Barnett partner Martin Landrieu has posted previously on the Department’s attempt to charge hundreds of thousands of dollars in “delinquent taxes” the Department claims is owed under… Continue Reading

Beware of Louisiana Severance Tax Assessments on Crude Oil

Posted in Tax
The Louisiana Department of Revenue’s Field Audit Division has recently embarked on an effort to pursue Louisiana oil producers for additional severance tax.  The Field Audit Division is now interpreting long-standing oil purchase contracts to include a disallowable “transportation deduction,” and thus to assert that the severance tax paid on crude oil sold during the… Continue Reading

Update on Louisiana Severance Tax Exemption

Posted in Legal Updates, Tax
On June 19, 2015, Louisiana severance tax exemptions were revised for horizontal wells that commence production on or after July 1, 2015. On that date, Act No. 120 became law to amend Louisiana Revised Statute 47:633(7)(c)(iii) and to enact new Louisiana Revised Statute 47:633(7)(d). The statute, as revised, keeps in place an exemption from severance… Continue Reading

Follow Up on Louisiana Severance Tax Incentives

Posted in News, Tax
Julie Jardell posted a blog article on April 30, 2014 entitled “Louisiana Severance Tax Incentives.” The article provided an overview of certain tax incentives depending upon the classification of the well being drilled.  The article also referenced several bills then before the Louisiana legislature that if passed, would alter these incentives. On August 18, 2014,… Continue Reading

Louisiana Severance Tax Incentives

Posted in News, Tax
While the standard severance tax rate in Louisiana is 12.5% on oil production, Louisiana law provides certain tax incentives depending upon the classification of the well being drilled.  Below is an overview of some of these severance tax incentives.  As noted below, there are several bills currently before the Louisiana legislature to alter these incentives.… Continue Reading