KRS 137.120: Tax on production of crude petroleum.

(1) Every producer of crude petroleum oil shall pay a tax for state purposes equal to

four and one -half percent (4.5%) of the market value of all crude petroleum

produced by him in this state.

(2) A producer of crude petroleum oil shall include any person owni ng an interest in

crude petroleum oil produced in this state.

(3) The tax provided by this section shall be imposed and attached when the crude

petroleum is first transported from the tanks or other receptacle located at the place

of production, and shall be imposed ratably upon all persons owning any interest in

such oil.