Well Incentives provide operators with an excellent opportunity to reduce their overall Severance Tax liability. However, the processes and laws/regulations by which these incentives are applied for, certified, and claimed on the respective Severance Tax reports are often complex and time-consuming. Types of wells that often receive incentives include:

• Tight sands (also known as high cost gas) completions (TX, AR)
• Horizontal wells (OK, LA, often considered tight sands in TX)
• Deep wells (TX, OK, LA)
• Previously inactive wells (TX, LA, OK)
• Marginal wells or wells on gas lift (LA)
• Secondary/Tertiary Recovery (TX, OK, LA)

We provide our clients with certification and recovery services that maximize available tax savings. Our tax professionals have Certification and Recovery experience in Texas, Louisiana, Oklahoma, Arkansas, Wyoming, and many other states — all of which offer significant severance tax incentives to producers with qualifying wells/projects.

However, most incentives have limited durations, and some even require certification prior to commencement of the project (Texas Enhanced Oil Recovery, for example). Timing is critical in maximizing the value of these incentives.

Already have a consultant working on these issues? We will gladly perform a no-cost, no-obligation secondary review to ensure nothing was missed!