Fillable Form 10-169 - Amended Producer Report Of Natural Gas Tax (Page 4 of 4) in pdf

Form 10-173 (Back)(Rev.6-12/6)

Texas Amended Report of Natural Gas Tax Producer Lease Detail Supplement

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

Also, see the Natural Gas Tax Guide for thorough information.

General Information

The net adjustment process must be used when amending previously reported data. When amending previously reported data, enter:

• lease information in Items 1 through 13, and

• volumes and values as negative figures to delete data previously reported in Items 14 through 24, except Items 15, 18 and 23. Enter a dash in the beginning of a number to denote

a negative sign.

To report new lease information in Items 1 through 13 including “exemption type” in Item 9 and “API number” (in Item 10, if applicable), enter the correct volumes and values.

Specific Instructions

Volumes: Report all gas volumes in “MCF” (1000 cubic feet at a pressure of 14.4 pounds plus 4 ounces or 14.65 pounds absolute). For information on converting MCF to MMBTU

or converting MMBTU to MCF, see the Natural Gas Tax Guide on the Comptroller’s website. Do not report any volume amounts with decimals. Round the volume amount to the next

whole number.

Items 1, 2, 5, 7 and 8.

• Enter the lease identification number assigned by the Texas Railroad Commission (RRC) in Item 7. For a gas lease, enter the 6-digit lease number. For an oil lease, add

a leading zero (0) to the 5-digit lease number and enter as a 6-digit number. If the RRC has not assigned a lease number, then enter the 6-digit drilling permit number

in Item 7.

• Items 7 and 8: Do not leave blank.

• If reporting a plant, then enter R3 and the last four digits of the plant identification number assigned by the RRC in Item 7.

Item 3.

Commodity: Enter the 2-digit alpha code for the type of commodity reported on the lease identified in Item 7.

• Raw Gas (RG) - Sale or purchase of raw gas, unprocessed gas from an oil well or gas well gas.

• Lease Use (LU) -All gas produced and used to run equipment on the lease regardless of whether it is for oil well, gas well gas or residue gas. The lease use item will

also include miscellaneous sales of gas to persons not normally engaged in purchasing gas for resale.

• Condensate (CN) -The taxable disposition and production of all condensate from a gas well, actual or theoretical. Condensate is the liquid hydrocarbon (a high gravity

oil) that is or can be, removed from gas by a separator. It does not include absorption and separation by a fractionating process. Condensate volume should be rounded

to the nearest barrel.

• Residue (RS) - Residue gas sold or purchased only when there is a distinct sale or purchase of residue gas. Example: If a processing plant takes title to both the

products and residue commodities, do not report the products and residue commodities as separate items. Use the raw gas designation and enter the plant operator

as the purchaser.

• Products (PR) -Report only when the purchasers of products and residue commodities are different parties. The volume associated with the product commodity will

be the raw gas volume delivered to the gas processing plant (plant inlet volume).

Commodity Code: Enter the numeric code for the type of commodity reported on the lease identified in Item 1 and Item 7. The numeric codes are: 1 - Raw Gas,

Item 4.

3 - Lease use, 4 - Condensate, 5 - Residue, 6 - Products.

Item 6.

County Code: Enter the 3-digit county code for the county of production indicated in Item 2. A list of county codes is available on the Comptroller’s website at www.

window.state.tx.us/taxinfo/taxforms/10-codes.html or in the Natural Gas Tax Guide.

Check Digit: 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.

Item 9.

Exemption Type: Enter the Comptroller approved numeric code for the legislative exemption type, if applicable.

Description of Approved Exemption Type

Code

Two-year inactive well, effective Sept. 1, 1997

Incremental production casinghead gas lease, effective Sept. 1, 1997

Flared/released casinghead gas well, effective Sept. 1, 1997

Qualifying low-producing gas well, effective Sept. 1, 2005

High cost gas lease with reduced tax rate effective, Sept. 1, 1996

Reactivated orphaned well, effective Jan. 1, 2006

Three-year inactive well, effective Sept. 1, 1991

Geothermal energy, effective Sept. 1, 2009

Item 10.

API Number: Enter the last eight digits of the America Petroleum Institute (API) number assigned by the RRC to each well that qualifies for a well-

level exemption. The API number is only required for the two-year inactive lease exemption (Type 3), three-year inactive well exemption (Type 7) and

reactivated orphaned well exemption (Type 12).

Item 11.

Off Lease Sale?: Gas is considered an “off lease” sale when delivery of the gas to the purchaser is made away from the lease. If the producer arranges for delivery of

gas, then the purchaser records the volume received at the point of delivery. If an “off lease” sale is reported in Item 11 as “YES,” then the tax liability must be reported

as “YES” in Item 18, the purchaser taxpayer number must be left blank in Item 13, and the next taxable value must be reported in Item 22 and Item 25, if applicable.

Items 12 and 13. Enter the name of your purchaser in Item 12 and their 11-digit Texas taxpayer number in Item 13.

Item 14.

Total Lease Volume: Enter 100% of the volume produced for the lease reported in Item 7 for each commodity type. This volume should match the volume reported to

the RRC. If you are a non-operator for this lease, report zero volume in Item 14.

Item 15.

Tax Reimbursement: Mark the block indicating whether tax reimbursement is included in calculating the value in Item 15, as outlined in your contract. For information on

tax reimbursement, see Tax Rule 3.18, at

Item 16.

Your Volume: Producer/Operator - Enter the volume of gas or condensate sold, as noted on your contract. Non-Operator/Producer taking their production in-kind must

enter your share of the volume of gas or condensate sold, as noted on your contract.

Item 17.

Value of Your Volume: Enter the entire value associated with the volume indicated in Item 16. This is usually referred to as the “contract price.” Do not include tax

reimbursement, if applicable.

Item 18.

Are You Liable for Tax?: Enter “YES” or “NO” for all lease types, even if you do not owe tax. Tax liability must be reported as “YES” by at least one party as stated in

the contract between the operator and the purchaser, even if the lease qualifies for 100% exemption and taxes are not due because of the legislative exemption status.

Item 19.

Governmental Royalty Volume: Enter the volume of gas not subject to tax due to governmental exempt status, such as a city, town or county government in Texas, a

school district in Texas, public (state owned) colleges and universities in Texas, or political subdivisions of the Federal government. See Rule 3.14.

Item 20.

Governmental Royalty Value: Enter the value of the volume for the gas reported in Item 19. Do not enter volumes associated with lease types approved for a legislative

tax exemption.

Item 21.

Marketing Cost: Enter actual marketing cost incurred. The “market value at the mouth of the well” shall be determined by ascertaining the actual marketing costs

incurred by the producer and subtracting these costs from the producer’s gross cash receipts from the sale of the gas. For detailed information on allowable marketing

costs, visit

Item 22.

Net Taxable Value: Enter the calculation of Item 17, less Items 20 and 21. If Items 20 and 21 exceed Item 17, enter the net taxable value as zero in Item 22. If reporting

the following exemption types, then enter net taxable values indicated below:

Enter the net taxable value as:

Exempt Type

03, 04, 07, 12 or 15

zero

the sum of Item 17 less Items 20 and 21 and proceed to Items 23 and 24

50% of the sum of Item 17 less Items 20 and 21

75% of the sum of Item 17 less Items 20 and 21 if the Comptroller certified price of gas ranges from $3.01 to $3.50/MCF

for 25% exemption

50% of the sum of Item 17 less Items 20 and 21 if the Comptroller certified price of gas ranges from $2.51 to $3.00/MCF

for 50% exemption

zero if the Comptroller certified price of gas is less than or equal to $2.50/MCF

for 100% exemption

Item 23.

Reduced Tax Rate for Type 05: Enter the 3-digit reduced tax rate for the approved exemption Type 5 lease indicated in Item 7.

Item 24.

Tax Due on Type 05: Enter the tax due amount for the approved exemption Type 5 lease reported by multiplying Item 22 times the tax rate indicated in Item 23.

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.