Most states which levy a value-based natural gas Severance Tax consider the point of valuation to be the wellhead. In the modern production environment a true wellhead sales contract is rare - some degree of gas processing typically occurs prior to the sales point.

We apply a true work-back method to calculate the commodity price at the mouth of the well by identifying and quantifying each and every process that adds to the value of gas. The identified deductions — marketing cost and other deductions supported by the accounting data and records — are applied against the gross receipts from the sale of the gas in order to reduce taxable value.

See Our Process for additional information on these services.