Oklahoma § 68-1022 - Conditional increase in value of natural gas - Handling

§ 68-1022. Conditional increase in value of natural gas - Handling

and distribution of tax levied thereon.

When an increase in the gross value of petroleum or other crude

or mineral oil, natural gas, casinghead gas or liquids extracted

therefrom sold by a producer is subject to the approval of an agency

of the United States of America or a court of competent jurisdiction

Oklahoma Statutes - Title 68. Revenue and Taxation

adjudicating an appeal from said agency, the gross production tax

provided for in this article on any such proposed increase in gross

value when collected by a producer shall be separately reported and

conditionally paid, subject to and pending the final outcome of any

proceeding by such agency or court relating to a determination of

the amount of such increase in gross value; provided, however that

nothing herein shall be construed to impose any duty upon a producer

to collect any proposed increase in gross value; and provided

further, that "gross value" or "increase in gross value" as used in

this section shall mean the amount a producer is collecting for the

sale of any petroleum or other crude or mineral oil, natural gas,

casinghead gas or liquids extracted therefrom sold which is subject

to the jurisdiction of such agency or court. All monies so

conditionally collected by the Tax Commission under the provisions

of this section shall be accounted for in the following manner:

(a) At least once each month the Tax Commission shall deposit

such collections in a special account in a bank or banks approved as

a depository for monies of the State of Oklahoma. Each bank in

which such monies are deposited shall credit the account at the end

of each calendar quarter with the highest rate of interest then

being paid by such bank for deposited monies of the State of

Oklahoma, calculated on the total daily average balance on deposit

during such calendar quarter.

(b) When a producer or purchaser gives written notice to the

Tax Commission that such agency or court has, by final order,

disapproved, in whole or in part, the proposed increase in gross

value, then the Tax Commission shall, within thirty (30) days after

receipt of such notice, withdraw from the bank holding such monies

an amount of money equal to the tax conditionally paid on the

proposed increase in gross value which has been disapproved,

together with the interest earned on such money, and remit it to the

person, firm, association or corporation which conditionally paid

such tax.

(c) When such agency or court approves, by final order, the

proposed increase in gross value, in whole or in part, the producer

or purchaser involved having paid the tax conditionally shall

immediately give written notice of such approval to the Tax

Commission and it shall promptly withdraw from the bank holding such

monies an amount of money equal to said tax conditionally paid on

the proposed increase in gross value which has been approved,

together with the interest earned on such money, and shall

distribute the same as provided by the law then in force for the

distribution of gross production taxes.

Added by Laws 1968, c. 155, § 2, emerg. eff. April 9, 1968. Amended

by Laws 1978, c. 211, § 5, emerg. eff. April 19, 1978.

Oklahoma Statutes - Title 68. Revenue and Taxation