Fillable Form 10-166 - Amended Crude Oil Tax - Purchaser Report (Page 4 of 4) in pdf

Form 10-170 (Back)(Rev.6-12/4)

Instructions for Completing

Texas Amended Crude Oil Tax Purchaser Lease Detail Supplement

For assistance call 1-800-252-1384 or 512-463-4600. Information is also available online at

These instructions will give you information on how to amend with or without a locator number and how to add new lease information.

To Correct Previously Reported Data—Without a Locator Number

• If correcting barrels and/or values only, enter Items 1-10 as originally reported.

• Items 11-12 are replacement fields. Enter this information as it should be recorded.

• Adjust the barrels and/or values to net against what was previously reported.

Example: Gross barrels was originally reported as 100 barrels. It should have been 80 barrels. Your gross barrels will be reported as –20.

• For barrels and/or value fields that need no adjustment, either leave blank or “0” to reflect a “no change.”

• To remove an item that was previously reported, enter Items 1-12 as originally reported and report all barrels and values as negative amounts.

• If a new lease needs to be added, see the instructions for reporting a new lease.

Total all the taxable barrels (Item 15) and net taxable values (Item 19) and enter on the Summary Data page.

To Correct Previously Reported Data—With a Locator Number

Once a report has processed, a locator number is assigned by the Comptroller for each lease item. The purpose of the locator number is to eliminate

the need to re-enter the lease data, where no changes are necessary. This locator number can be used to replace any field for Items 4-12 and/or adjust Items 13-19.

• Items 4-12 are replacement fields. Enter the locator number in the space provided on the lease detail supplement. This will identify the lease to be corrected.

Correct only the item(s) that needs to be replaced. Leave the unchanged items blank.

• Items 7 and 9 can only be replaced. If amending to remove an exempt type or incremental exemption, the locator number can be used to reverse the data previously

reported. A new entry must be made to add the lease with no exempt type or no incremental exemption.

• Items 13-19 are adjusted fields. Enter the locator number to identify the lease where the adjustments are needed. Adjust the volume and values, as necessary.

Example: Gross value was originally reported as ....... $1,500.00

It should have been ..................................... $2,000.00

Your gross value will be adjusted by ............... $500.00 ($1,500.00 + $500.00 = $2,000.00). Use minus symbols to show reduced barrels and values.

• You may replace and adjust at the same time. Enter the locator number and replace the item(s) necessary (Items 4-12). This will replace the previously reported

lease data with the new information. Adjusting any item (blocks 13-19) will net against the new lease detail information.

• When replacing the exempt type, Item 7, adjustments may need to be made to the net taxable value, Item 19. For example, a lease was reported with no exemption.

It has now been approved as an enhanced oil recovery (EOR) project, Type 5, which is 50% exempt. Using the locator number, you may add a “05” in Item 7, Exempt

Type. If there was net taxable value reported, you will need to adjust the value by 50% by crediting from the previously reported value.

An exempt type (Item 7) and incremental exemption (Item 9) cannot be removed by using a locator number. Use the locator number to identify the lease and credit

out the barrels and values. A new entry will be required to add the non-exempt lease or a lease with no incremental exemption.

Well exemptions, exempt types 3, 7, 12 and 13, may have partial reversals. Credit the amounts from the non-exempt lease and add new detail information for the new exempt type.

To Report New Lease Information

Items 1, 5 & 6 - For the lease name shown in Item 1, enter the identification number assigned by the Texas Railroad Commission (RRC) in Item 5.

Add a leading “0” (zero) to the 5-digit oil lease number assigned by the RRC. Enter the check digit in the box to the right. The check digit is available at

https://ecpa.cpa.state.tx.us/cong/checkDigitForward.do. If the lease number has not been assigned by the RRC, use the drilling permit number in Item 5.

Mark Item 6 to denote if Item 5 is a drilling permit number.

Items 2 & 4 - In Item 2, enter the county of production. Enter the 3-digit county code for the county of production in Item 4. A list of county codes is available in the Crude

Oil Tax Guide and on the Comptroller’s website at

Items 3 & 10 - In Item 3, enter the name of the producer from whom you purchased crude oil. In Item 10, enter the 11-digit taxpayer number, assigned by the Comptroller’s

office, for the producer name listed in Item 3. A taxpayer number search is available on the Comptroller’s website.

Enter the Comptroller approved numeric legislative exempt type, if applicable.

Item 7 -

02 = Enhanced Oil Recovery Projects approved prior to Jan. 1, 1994

03 = Two-Year Inactive Wells, effective Sept. 1, 1997

04 = Enhanced Oil Recovery Projects approved Jan. 1, 1994 through Aug. 31, 1997

05 = Enhanced Oil Recovery Projects approved after Aug. 31, 1997

06 = Incremental Production Leases, effective Sept. 1, 1997

07 = Three-Year Inactive Wells, effective Sept. 1, 1993 (expired Feb. 28, 2006)

08 = Co-Production Projects, effective Jan. 1, 1994

09 = Texas Experimental Research Recovery Activity (TERRA) Wells, effective Jan. 1, 1996

10 = Temporary Severance Tax Relief, effective Feb. 1, 1999 (expired July 31, 1999)

11 = Qualifying Low-Producing Leases, effective Sept. 1, 2005

12 = Reactivated Orphaned Wells, effective Jan. 1, 2006

13 = Enhanced Efficiency Equipment Wells, effective Sept. 1, 2005

14 = Enhanced Recovery Project Using Anthropogenic Carbon Dioxide, effective Sept. 1, 2007

15 = Geothermal Energy, effective Sept. 1, 2009

Enter the last 8 digits of the American Petroleum Institute (API) number assigned to each well that qualifies for a well-level exemption. This must be entered

Item 8 -

or the exemption will be disallowed. This includes exempt types 3, 7, 12 and 13.

For expanded EOR projects, mark the incremental exemption block to indicate that baseline production or incremental production is being reported.

Item 9 -

NOTE: If you are reporting incremental production, baseline production must also be reported separately.

Item 11 - Complete this item for ALL lease types, even if you do not owe any tax. If you mark “YES” (responsible for tax remittance), complete all remaining items. If you

mark “NO” (not responsible for tax remittance), complete Items 12, 13 and 16 only.

Item 12 - Enter the API gravity for the lease. This should be a numeric figure, rounded to the tenth (xx.x).

Item 13 - The first purchaser must report the gross barrels of oil bought from an operator or producer. Round all volumes up to the nearest whole number.

Item 14 - Enter the volume of oil not subject to tax because of a governmental exempt status, such as state royalty. See Rule 3.34 Exemption of Certain Royalty Interests

from Oil Occupation Taxes and Regulation Pipeline Taxes on the Comptroller’s website. Round all volumes up to the nearest whole number.

Item 15 - Enter the taxable barrels (gross barrels - exempt barrels).

Item 16 - Enter the total value of the crude oil reported in Item 13. Enter dollars and cents.

Item 17 - Enter the value of oil not subject to tax because of a governmental exempt status, such as state royalty. See the Rule 3.34 Exemption of Certain Royalty

Interests from Oil Occupation Taxes and Regulation Pipeline Taxes on the Comptroller’s website. Enter dollars and cents.

Item 18 - Enter any physical trucking charges incurred by the producer. Enter dollars and cents.

Item 19 - Enter the value on which tax should be paid. For EOR projects (exempt types 2, 4 and 5), incremental production leases (exempt type 6), and co-production projects

(exempt type 8), enter one-half of (gross value minus exempt and trucking). For two-year inactive, three-year inactive, TERRA, reactivated orphaned wells and

geothermal energy (exempt types 3, 7, 9, 12 and 15), enter “0.” For low-producing oil leases (exempt type 11), enter the taxable value based on the price of oil.

The applicable tax credit can be found on the Comptroller’s website. For enhanced efficiency equipment (exempt type 13), enter “0” unless the tax credit of 10%

of cost of equipment, not to exceed $1,000.00, has been reached. For Enhanced Recovery Projects Using Anthropogenic Carbon Dioxide (exempt type 14), enter

the taxable value based on the percentage of anthropogenic carbon dioxide used in the project for the report period. Enter dollars and cents.

You have certain rights under Chapters 552 and 559, Government Code, to review, request and correct information

we have on file about you. Contact us at the address or phone numbers listed on this form.