Form R-9020i - Instructions For Completing Form O-2 printable pdf download

R-9020i (9_12)

instructions for completing Form o-2

This application may be filed by the producer, purchaser, or duly authorized

50 percent salt water, the tax on this well and on any other incapable wells on the

reported to the Office of Conservation on their Form OGP. Lease name refers to the

representative.

lease must be paid at the full rate. Any well certified on form SEV. O-2, that may

official name assigned by the Office of Conservation to identify a lease.

qualify for the stripper tax rate at a later production month, must be certified by the

Applying for stripper well status

department on separate Form SEV. O-2 before the stripper rate can be taken. We

conservation well number (4 digits)

do not allow tax rate changes between the reduced rates (stripper or incapable)

This application is for the certification of stripper wells for oil severance tax

This is the well number assigned by the Office of Conservation to identify a well

unless the well is properly certified by the department on Form SEV. O-2.

purposes. A stripper well is defined as a well that is incapable of producing an

on a lease.

average of more than 10 barrels of oil per producing day.

Filing Procedures

Parish, field, producer, lease code, well serial number

A separate application is required for each field. The original application will

Wells that have been certified as stripper wells on this application must be reported

Refers to code numbers assigned by the Office of Conservation and reported as

remain on file with the Louisiana Department of Revenue; a copy will be returned

each month on Form SEV O-3 if the certification number assigned to the well(s) is

such on the Form DM-1-R and the permit to drill.

to the producer; and a copy will be furnished to the taxpayer immediately after

prefixed with the letter “A.”

departmental approval. Copies returned to the producer and taxpayer will include a

opening stock (do not round off)

certification code assigned by the Department.

Failure to report monthly production and disposition barrels as required on the

This is the inventory “prior production” remaining in the tank for each well serial.

report Form SEV 0-3 could result in denial of the stripper oil severance tax rate of

The taxpayer number must be furnished on this application. All data required on

3.125 percent of value.

Production (do not round off)

this form must be supplied. It is important that all data be furnished and that the

codes be accurate.

certification of stripper wells

This is the total production from this well for the given taxable period.

Any stripper wells certified as such are eligible for the stripper oil severance tax

The stripper or incapable status of a well may not be transferred. A change in

number of producing days

rate of 3.125 percent of value. The certification number is prefixed with the letter

ownership of a well requires a new application for stripper or incapable status.

codes of either “A” or “B”.

This is the number of days the well produced during the given taxable period.

The completed application must be submitted to the Department of Revenue,

Should any wells certified as stripper wells on this application subsequently

Daily average production (do not round off)

Severance Tax Section, Special Programs, Post Office Box 66362, Baton Rouge,

produce an average of more than 10 barrels of oil per producing day, the stripper

LA 70896-6362. The due date for filing this application is on or before the twenty-

This is calculated by dividing “production” by “number of producing days.”

tax rate of 3.125 percent of value is NOT applicable for that month.

fifth day of the second month following the production month.

Percentage of salt Water Produced Daily

Any stripper well certified on Form SEV. O-2 that may qualify for the incapable tax

name of reporting company

rate at a later production month must be certified by the department on a separate

For incapable well certification include the percentage of salt water produced

Name of producer or duly authorized representative submitting the application.

Form SEV. O-2 before the incapable rate can be taken. The Department does not

daily.

allow rate changes between the reduced rates (stripper or incapable) unless the

Address of reporting company

well is properly certified by the department on Form SEV. O-2.

number of wells on lease (3 digits)

Address of producer or duly authorized representative submitting the application.

Well Definitions

Applying for incapable well status

company number (5 digits)

This application is for the certification of incapable wells for oil severance tax

capable well is a well producing an average of more than 10 barrels of oil per day

purposes. An incapable well is defined as a well which is incapable of producing

and less than 50 percent salt water.

Code number assigned to the reporting company by the Louisiana Office of

an average of more than 25 barrels of oil per producing day and produces 50

Conservation or the Department of Revenue.

percent or more salt water (salt water production must be equal to or greater than

incapable well is a well incapable of producing an average of more than 25 barrels

oil production). All wells on the lease or property must be incapable or stripper.

of oil per producing day and which also produces 50 percent or more salt water

revenue Account number

per day.

This is your 10-digit Louisiana Tax Number.

certification of incapable wells

stripper well is a well incapable of producing an average of more than 10 barrels

Any incapable wells certified as such are eligible for the incapable oil severance

Production month

of oil per producing day.

tax rate of 6.25 percent of value. The certification number is prefixed with the letter

The month and year this production is to be certified for.

code of “P”.

Condensate is not at any time subject to reduced severance tax rates, and is

Field name

taxable at 12.5 percent of value.

Wells that have been certified, as incapable wells, on this application must be

reported each month on Form SEV O-3. Failure to report monthly production and

Official name assigned by the Office of Conservation to identify a field. A separate

disposition barrels as required on the report Form SEV 0-3 could result in denial of

Taxpayer number

application must be submitted for each field.

the incapable oil severance tax rate of 6.25 percent of value.

Company responsible for remitting the severance tax on this production.

Producer and lease name

Should any wells certified as incapable wells on this application subsequently

The producer is defined as that person or company under whose name oil is

produce an average of more than 25 barrels of oil per producing day or less than

Form R-9020i - Instructions For Completing Form O-2

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