Avanti Exploration, LLC v. Kimberly Robinson, Secretary, Louisiana Department of Revenue, (La 3rd Cir Court of Appeal)

The Louisiana Third Circuit Court of Appeal ruled that an oil producer, Avanti Exploration, LLC, properly remitted severance tax based on the full amounts of its gross receipts received from its first purchasers for crude oil sold

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

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

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

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.