Instructions For Completing Form O-25 printable pdf download

Instructions for completing Form O-25

Applying for incapable well status

The taxpayer number must be furnished on this

Name of reporting company

Opening stock

This application is for the certification of incapable

application. All data required on this form must be

Name of producer or duly authorized representative

Prior-period production remaining in tank for each

wells for oil severance tax purposes. An incapable

supplied. It is important that all code data be

submitting the application.

well serial.

well is defined as a well which is incapable of

furnished and that the data be accurate.

producing an average of more than 25 barrels of oil

Company number

Production

per producing day and produces 50 percent or more

Certification of incapable wells

Code number assigned to the reporting company by

Total production from this well for the given taxable

salt water (salt water production must be equal to or

Any incapable wells certified as such are eligible for

the Office of Conservation or the Department of

period.

greater than oil production). All wells on the lease or

the incapable oil severance tax rate of 6.25 percent

Revenue and Taxation.

property must be incapable. A copy of the latest

of value.

Number of producing days

form DM-1-R, including test data pertaining to all

Revenue Account Number

The number of days the well produced during the

This is your 10-digit Louisiana Tax Number for

wells included in the lease property, must be

Wells which have been certified as incapable wells

given taxable period.

Corporation Income and Franchise tax, Sales tax,

submitted with this application.

on this application must be reported each month on

Withholding tax or Oilfield Site Restoration Fee. If

form SEV O-3. Failure to report monthly production

Daily average production

you are not registered for any of these taxes, please

This application may be filed by the producer,

and disposition barrels as required on the report

Calculated by dividing “Production” by “Number of

write or call the Department of Revenue and

purchaser, or duly authorized representative.

form SEV 0-3 could result in denial of the incapable

producing days.”

Taxation for a registration application, Form R-

oil severance tax rate of 6.25 percent of value.

16018.

The original and two copies of the completed

Number of wells on lease (definitions)

application must be submitted when applying for the

Should any wells certified as incapable wells on this

1. Capable well - a well producing an average of

Field name

incapable oil severance tax rate. The original

application subsequently produce an average of

more than 10 barrels of oil per day and less than

Official name assigned by the Office of

application will remain on file with the Louisiana

more than 25 barrels of oil per producing day or

50 percent salt water.

Conservation to identify a field. A separate

Department of Revenue and Taxation, one copy will

less than 50 percent salt water, the tax on this well

2. Incapable well - a well incapable of producing an

application must be submitted for each field.

be returned to the producer, and one copy will be

and on any other incapable wells on the lease must

average of more than 25 barrels of oil per

furnished to the taxpayer immediately after

be paid at the full rate. Any well certified on form

producing day and which also produces 50

Producer and Lease name

departmental approval. Copies returned to the

SEV. O-25, that may qualify for the stripper tax rate

percent or more salt water per day.

The producer is that person or company under

producer and taxpayer will include certification

at a later production month, must be certified by the

3. Stripper well - a well incapable of producing an

whose name oil is reported to the Office of

numbers assigned by the Department of Revenue

department on form SEV. O-10 before the stripper

average of more than 10 barrels of oil per

Conservation on their form R-1. Lease name refers

producing day.

and Taxation.

rate can be taken. We do not allow tax rate changes

to the official name assigned by the Office of

between the reduced rates (stripper or incapable)

Conservation to identify a lease.

The completed application must be submitted to the

unless the well is properly certified by the

Condensate is not at any time subject to reduced

Department of Revenue and Taxation, Severance

department on forms SEV. O-10 or SEV. O-25.

severance tax rates and is taxable at 12.5 percent

Conservation well number

Tax Division, Post Office Box 201, Baton Rouge, LA

of value.

Well serial number

70821-0201. The due date for filing this application

The incapable status of a well may not be

Refers to code numbers assigned by the Office of

is on or before the fifteenth day of the second

transferred. A change in ownership of a well

Conservation and reported as such on forms R-1

month following the production month.

requires a new application for incapable status.

and DM-1-R.

Instructions For Completing Form O-25

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