{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-1009","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-1009","heading":"Payment of tax - Due date - Delinquent taxes - Persons","body":"liable for tax - Election to report and pay tax - Payment upon basis\n\nof prevailing price – Payment pursuant to contract or agreement.\n\nA. The gross production tax on asphalt and on ores bearing\n\nlead, zinc, jack, gold, silver or copper, and on petroleum oil, tank\n\nbottoms, pit oil, and liquid hydrocarbons from which petroleum oil\n\nis extracted, and on gas shall be paid on a monthly basis in\n\naccordance with this article.\n\nB. The gross production tax shall become due on the first day\n\nof each calendar month on all lead, zinc, jack, gold, silver or\n\ncopper, petroleum oil, tank bottoms, pit oil, and liquid\n\nhydrocarbons from which petroleum oil is extracted, natural gas or\n\ncasinghead gas produced in and saved during the preceding monthly\n\nperiod, and, if the tax is not paid on or before the twenty-fifth\n\nday of the second calendar month following the month of production,\n\nthe tax shall become delinquent and shall be collected in the manner\n\nprovided by law for the collection of delinquent gross production\n\ntaxes. The provisions of this subsection shall apply to payment of\n\ngross production taxes irrespective of any other statute relating\n\nthereto.\n\nC. On all petroleum oil extracted from tank bottoms, pit oil,\n\nor liquid hydrocarbons, the gross production tax shall be paid by\n\nthe operator of the reclaiming plant, unless the tax levied by this\n\narticle has already been paid thereon.\n\nD. On oil and gas sold at the time of production, the gross\n\nproduction tax shall be paid by the purchaser of such products, and\n\nsuch purchaser shall, and is hereby authorized to deduct in making\n\nsettlements with the producer and/or royalty owner, the amount of\n\ntax so paid. In the event oil is not sold at the time of production\n\nbut is retained by the producer, producers may elect to report and\n\npay the gross production tax on such oil in accordance with the\n\nprovisions of this section. This election shall require prior\n\nwritten notice to the Oklahoma Tax Commission and producers may be\n\nrequired to submit reports to the Commission that reconcile\n\nproduction transferred off the lease. The purchaser of such oil\n\nshall not be liable for the gross production tax and shall not be\n\nrequired to obtain a purchaser’s reporting number for such oil. The\n\nobligations outlined in this subsection shall not be controlled by\n\nany contractual provisions between the producer and the purchaser;\n\nprovided, that in settlement with the royalty owner such producer\n\nshall have the right to deduct the amount of such tax so paid on\n\nroyalty oil or to deduct therefrom royalty oil equivalent in value\n\nat the time such tax becomes due with the amount of the tax paid.\n\nThe gross production tax upon asphalt, or on ores bearing lead,\n\nzinc, jack, gold, silver or copper shall be paid by the producer for\n\nhimself or herself, including the royalty interest; provided, that\n\nin settlement with the royalty owner such producer shall have the\n\nright to deduct the amount of such tax so paid on royalty asphalt,\n\nor on ores bearing lead, zinc, jack, gold, silver or copper, or to\n\ndeduct therefrom royalty asphalt, or ores bearing lead, zinc, jack,\n\ngold, silver or copper, equivalent in value at the time such tax\n\nbecame due, to the amount of tax paid.\n\nE. 1. Producers, either as operators of producing wells or as\n\nnonoperating working interest owners who take gas in kind at the\n\nwellhead at the time of production, may elect to report and pay the\n\ngross production tax on such gas in accordance with the provisions\n\nof this section, if the first sale of such gas by the producer is to\n\na final consumer or user of the gas. This election shall not be\n\navailable to a producer if the first sale of such gas is to a\n\npurchaser who is approved and bonded to remit gross production taxes\n\nor unless prior approval of the Oklahoma Tax Commission is obtained\n\nby the producer. This election shall not be controlled by any\nof this section, if the first sale of such gas by the producer is to\n\na final consumer or user of the gas. This election shall not be\n\navailable to a producer if the first sale of such gas is to a\n\npurchaser who is approved and bonded to remit gross production taxes\n\nor unless prior approval of the Oklahoma Tax Commission is obtained\n\nby the producer. This election shall not be controlled by any\n\ncontractual provisions between the producer and the purchaser. This\n\nelection shall be made only by the producer upon forms prescribed\n\ntherefor.\n\nUpon exercise of the election to report and pay the gross\n\nproduction tax by a producer, the purchaser of such gas shall not be\n\nliable for the gross production tax and shall not be required to\n\nobtain a purchaser’s reporting number for such gas.\n\n2. Gas when produced and utilized in any manner, except when\n\nused in the operation of the lease or premises in the production of\n\noil or gas, or for repressuring, shall be considered for the purpose\n\nof this article, as to the amount utilized, as gas actually produced\n\nand saved.\n\nF. 1. In case oil or gas is sold under circumstances where the\n\nsale price does not represent the cash price prevailing for oil or\n\ngas of like kind, character or quality in the field from which such\n\nproduct is produced, the Tax Commission may require the tax to be\n\npaid upon the basis of the prevailing price then being paid at the\n\ntime of production for sales in the field for oil or gas of like\n\nkind, quality and character and on no other basis.\n\n2. In the case where the sale of oil or gas is between related\n\nentities, the taxpayer shall have the burden of proving with\n\nevidence of arm’s-length sales between unrelated parties that the\n\nsales price represents the cash price prevailing for oil or gas of\n\nlike kind, character or quality for sales in the field from which\n\nsuch product is produced. In the absence of such proof, the\n\nprevailing price shall be presumed to be the average price of oil or\n\ngas produced for sales in the county from which the product is\n\nproduced, as determined by the Tax Commission from monthly tax\n\nreports filed pursuant to Section 1010 of this title. In\n\ndetermining the average price, the Tax Commission shall not include\n\nthe sales of oil or gas under review and shall not include prices\n\nfrom other sales that have been previously adjusted by the Tax\n\nCommission pursuant to this subsection.\n\n3. For the purposes of this subsection, an entity is related to\n\nanother entity if:\n\na. the two entities have significant common purposes and\n\nsubstantial common membership,\n\nb. the two entities have direct or indirect substantial\n\ncommon direction or control, or\n\nc. either entity owns, directly or through one or more\n\nentities, a fifty percent (50%) or greater interest in\n\nthe capital or profits of the other entity.\n\nG. Pursuant to the provisions of a gas purchase contract or\n\nagreement, if the first purchaser makes payments to the producer as\n\na result of the failure or refusal of such purchaser to take gas,\n\nsuch payments, for purposes of this article, are hereby deemed to be\n\npart of the gross value of gas taken according to such contract or\n\nagreement. The gross production tax shall be calculated upon the\n\ngross value, including such payments, in accordance with the\n\nprovisions of this article. Gas on which the gross production tax\n\nhas been paid in this manner when taken by the purchaser shall be\n\nreported as gas on which the tax has been paid. If such gas, which\n\ncorresponds to such payments, is not taken but payments therefor are\n\nretained by the producer, then such payments are hereby deemed to be\n\na premium on gas which was taken under such contract or agreement.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"5ad4995f39111e49f1e9dae6efbf39d6e1fe9ad1f698460ae8478cc9fe44d52f","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-1008a","next":"us-ok/okla.-stat.-tit.-68-68-101"},"notice":"GroundRules: Original legal text. Not legal advice."}