SECTION 3.731. Oil-Field Cleanup Regulatory Fee on Oil

(a) Imposition. The oil-field cleanup regulatory fee on oil is imposed upon taxpayers who are liable for the oil production tax under Tax Code, §202.153 (First Purchaser to Pay Tax) or §202.154 (Producer to Pay Tax on Oil Not Sold).

(b) Reports. The fee is reported and paid on the crude oil tax report forms in the same manner as the oil production tax imposed by Tax Code, Chapter 202 (Oil Production Tax).

(c) Amount of fee.

(1) The rate of the fee is five-eighths of $.01 ($.00625) per each standard 42-gallon barrel of crude oil produced.

(2) Volume subject to the fee. The fee is due on all barrels of oil produced, except an interest owned by a governmental entity as defined in §3.34 of this title (relating to Exemption of Certain Royalty Interests from Oil Occupation Taxes and Regulation Pipeline Taxes).

(d) Penalty and interest. Tax Code, Chapter 202 (Oil Production Tax) applies to the administration and collection of the fee, and the penalty and interest provisions of that chapter apply to any person who fails to pay or report the fee.

(e) Exemptions and reductions. The exemptions and reductions set out in Tax Code, §§202.052 (Rate of Tax), 202.054 (Qualification of Oil from New or Expanded Enhanced Recovery Project for Special Tax Rate), 202.056 (Exemption for Oil and Gas from Wells Previously Inactive), 202.057 (Tax Credit for Incremental Production Techniques), 202.059 (Exemption for Hydrocarbons from Terra Wells), and 202.060 (Exemption for Oil and Gas from Reactivated Orphaned Wells), do not affect the fee imposed by this section.

Source Note: The provisions of this §3.731 adopted to be effective February 5, 1992, 17 TexReg 474; amended to be effective November 5, 2001, 26 TexReg 8850; amended to be effective October 12, 2004, 29 TexReg 9556; amended to be effective March 30, 2020, 45 Texreg 2205