SECTION 3.732. Oil-Field Cleanup Regulatory Fee on Natural Gas

(a) Imposition. The oil-field cleanup regulatory fee on natural gas is imposed upon the first purchaser or producer of natural gas who is liable for the gas production tax under Tax Code, §201.204 (First Purchaser to Pay Tax) or §201.2041 (Producer to Pay Tax on Certain Gas).

(b) Reports. The fee is reported and paid on the natural gas tax report forms in the same manner as the gas production tax is imposed by Tax Code, Chapter 201 (Gas Production Tax).

(c) Amount of fee. The rate of the fee for gas produced and saved is one-fifteenth of $.01 ($.000667) per 1,000 cubic feet (MCF) of gas.

(d) Volume subject to fee. The fee is due on all gas produced and saved, except an interest owned by a governmental entity as defined in §3.27 of this title (relating to Exemption of Certain Interest Owners from Gas Occupation Taxes).

(e) Penalty and interest. Tax Code, Chapter 201 applies to the administration and collection of the fee, and penalty and interest provided by that chapter apply to any person who fails to pay or report the fee.

(f) Exemptions and Reductions. The exemptions and reductions set out in Tax Code, §§201.053 (Gas Not Taxed), 201.057 (Temporary Exemption or Tax Reduction for Certain High-Cost Gas), 201.058 (Tax Exemptions), 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 §3.732 adopted to be effective February 5, 1992, 17 TexReg 474; amended to be effective November 18, 2001, 26 TexReg 9158; amended to be effective October 12, 2004, 29 TexReg 9556; amended to be effective March 1, 2012, 37 TexReg 1362; amended to be effective March 6, 2014, 39 TexReg 1482; amended to be effective March 30, 2020, 45 TexReg 2206