EOR Reduced Tax Annual Report (Form H-14)
The operator must file an annual report (Form H-14) each year the project remains eligible for the reduced severance tax rate. The annual report must be filed within 30 days of the first anniversary of the date that the Commission acted on the EOR positive production response certification application and annually thereafter. The annual due date is the date given on the H-13 approval letter.
Required data submitted with the annual report are:
- Updated project production and injection history for the prior five years, in both graph and tabular format, that includes all oil, gas and water production, volumes and types of fluid injected, and well counts for both producing and injection wells for each month.
- The volume of oil that qualifies for the reduced tax rate for the reporting cycle.
The recovered oil tax rate shall continue for a maximum of ten years unless the project is terminated by the operator prior to the ten-year period. If this occurs, the operator shall notify the Commission and the Comptroller in writing within 30 days after the last day of active operations.
If the Commission determines a project has been terminated or there is action that affects the tax rate, the Commission must notify the Comptroller immediately in writing.
In addition to the Form H-14 that is filed with the RRC, the Form AP-216, Texas Crude Oil Lease Tax Exemption Application, must be filed with Comptroller’s office. The form can be mailed to:
Texas Comptroller of Public Accounts
P.O. Box 13528, Capitol Station
Austin, Texas 78711-3528
The operator must include a copy of the H-12 EOR project approval letter and the H-13 positive production certification approval letter that shows both the H-12 and H-13 approval dates.
