Fillable Form Ap-217 - Texas Well Exemption Application (Page 2 of 2) in pdf

Form AP-217 (Back)(Rev.10-12/2)

General Information

Who Files: Form AP-217 must be filed by taxpayers seeking an exemption for:

• wells certified by the Texas Railroad Commission (RRC) for oil, gas well gas or casinghead gas produced from two-year inactive wells, flared/released

casinghead gas from oil wells and reactivated orphaned gas produced from gas wells;

• qualifying low-producing gas produced from gas wells; or

• crude oil wells with enhanced efficiency equipment.

What is Needed: Additional documentation is required to be submitted with Form AP-217, as shown below.

Type of Well Exemption

Type of Documentation Needed

Two-Year Inactive Well

RRC Certification Letter

(This exemption applies for oil, gas well gas or casinghead gas

produced from a two-year inactive well.)

Flared/Released Casinghead Gas from Oil Wells

RRC Certification Letter

Reactivated Orphaned Gas Produced from Gas Wells

RRC Certification Letter

Qualifying Low-Producing Gas Produced from Gas Wells

See Rule 3.23 on Comptroller's website for detailed information:

Click on the link labeled "Rules."

Crude Oil Wells with Enhanced Efficiency Equipment

See Rule 3.40 on Comptroller's website for detailed information:

Click on the link labeled "Rules."

When to File: To recoup credits for previously paid tax on all approved well exemptions indicated above, credit-amended tax reports must be filed within four years

from the due date of a production period.

Instructions

Complete Items "a" Through "k" for All Types of Well Exemptions

Item e: Name of lease and well

Enter the lease or well name as reported to the Texas Railroad Commission (RRC).

Item f: County of production

Enter the county name of the lease or well as reported to the RRC.

Item g: RRC district number

Enter the district number of the lease as reported to the RRC.

Item h: RRC lease number

Enter the lease identification number assigned by the RRC.

Item i: API number

Enter the API number assigned to the well/lease by the RRC.

Item j: Well completion date

Enter the completion date (yy/mm) of the well as shown on RRC records.

Item k: Certification effective year and month (If applying for a qualifying low-producing well exemption, do not enter this information.)

Enter the certification year and month (yy/mm) as shown on the RRC Certification Letter for the lease.

Item l: RRC certification date (If applying for a qualifying low-producing well exemption, do not enter this information.)

Enter the date (mm/dd/yyyy) as shown on the RRC Certification Letter for the lease.

Qualifying Low-Producing Gas Well

Item m: Three-month period used

Enter the initial three-month period used to claim tax credits.

Crude Oil Well with Enhanced Efficiency Equipment

Item n: Date equipment purchased and installed

Enter the date (mm/dd/yyyy) the efficiency equipment was purchased and installed.

Item o: Average well production for the month prior to equipment installation

Enter the average well production for the month prior to installation of the enhanced efficiency equipment.

Item p: Total cost of equipment and installation

Enter the total cost of the enhanced efficiency equipment and installation. Enter whole dollars.

Item q: Severance tax credit (10% of total cost, cannot exceed $1000 per marginal well)

Enter 10 percent of the total cost.

Form Ap-217 - Texas Well Exemption Application Page 2

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