Louisiana Severance Tax

Louisiana severance tax laws are somewhat complex compared to other states.  There are many separate categories for each industry.  See the guide below for each industry:

Natural gas:

  1. $0.164 per mcf for full rate wells
  2. $0.03 per mcf for incapable oil-well gas
  3. $0.013 per mcf for incapable gas-well gas
  4. $0.131 per mcf for produced water full rate wells
  5. $0.024 per mcf for produced water incapable oil-well gas
  6. $0.0104 per mcf for produced water incapable gas-well gas

Oil:

  1. 12.5% of value for full rate oil / condensate
  2. 6.25% of value for incapable oil wells
  3. 3.125% of value for stripper and reclaimed oil
  4. 10% of value for produced water full rate
  5. 5% of value for produced water incapable oil
  6. 2.5% of value for water-stripper oil

NOTE: Stripper oil is tax exempt if oil prices are below $20 per barrel

Timber:

  1. 2.25% of current stumpage value for trees and timber
  2. 5% of current stumpage value for pulpwood

Minerals:

  1. $1.03 per ton for sulphur
  2. $0.06 per ton for salt
  3. $0.20 per ton for marble
  4. $0.03 per ton for stone
  5. $0.06 per ton for sand or shells
  6. $0.005 per ton for brine salt when used in manufacture of other products
  7. $0.12 per ton for lignite

Definitions used above:

  1. Incapable oil wells are defined as wells that produce less than 25 barrels per day and which also produces at least 50% salt water per day.  For gas, an incapable well has wellhead pressure of less than 50 psi and less than 250mcf daily production.
  2. Stripper oil wells are wells that produce less than 10 barrels of oil per day
  3. Reclaimed oil is salvaged via class one salvage crude reclamation facilites

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