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Electronic Reports for Low-Producing Well Exemptions (Exempt Type 11)
Filing Instructions

Original Reports

Prior to creating an Original Report, set the Average Taxable Gas Price (Avg NG Price) range for all leases with “Exempt Type 11” that will be included on the original report. To do this, follow these steps:

  1. Open the Petro software and click on the “Lease Setups” icon (4th shown at top).
  2. Find an “Exempt Type 11” lease and double click to open.
  3. Select the correct “Avg NG Price” range (bottom of setup screen) and save.
  4. Close the lease down and choose another until you have set all “Exempt Type 11” lease entries to the correct “Avg NG Price” range for the report period you are filing.
  5. Close the “Lease Setups Index” window and open the “Report Index” icon (5th shown at top).
  6. Click on the “New” icon (1st shown on second row of icons) and complete the report header choosing “Original” as your report type.
  7. Select the “Exempt Type 11” and enter the volumes and values for each of the lease entries.
  8. The Petro software will adjust the “Net Taxable Value” field based on the “Avg NG Price” range chosen.

Amended Reports

It is not necessary to set the Average Taxable Gas Price range on the “Exempt Type 11” leases prior to creating an “Amended Report.” Follow these steps to file an “Amended Report:”
  1. Open the “Report Index” icon (5th shown at top).
  2. Click the “New” icon (1st shown on second row of icons) and complete the report header choosing “Amended” as your report type.
  3. If the volume and value amounts were previously reported and these volume and value amounts need to be amended to claim the “Exempt Type 11,” credit out the volumes and values as originally reported including the “Net Taxable Value” field.
  4. Select the “Exempt Type 11” and enter the volumes and values up through the “Marketing Costs” field.
  5. Manually calculate the “Net Taxable Value” field and multiply the result by the appropriate percentage of the low-producing well exemption for the report period you are amending.
  6. Enter the manually adjusted amount into the “Net Taxable Value” field.

Example of an “Amended Report” when value amounts were not previously reported for a commodity:

Lease #234567 qualifies for the low producing well exemption for the May 2013 report period. The raw gas commodity must be reported for this lease. The May 2013 report period is eligible for a 50 percent credit. The following value amounts should be reported for the low-producing well exemption:

DESCRIPTION VALUE AMOUNTS TO BE REPORTED AS EXEMPT TYPE 11
Your Value $ 5,000
Less Marketing Costs $ 1,150
Net Taxable Value $ 1,925
($5,000 - $1,150 = $3,850 X .50 = $1,925)(This field must be manually calculated.)
Tax Due $ 144.38
($1,925 X .075 = $144.38)(This field is calculated by the computer system.)

Example of when value amounts were previously reported and the value amounts need to be amended to claim the low-producing well exemption:

Lease 289101 qualifies for the low-producing well exemption for the November 2012 report period. The November 2012 report period is eligible for a 100 percent credit and must be amended to claim the low-producing well exemption. Two transactions are required to be filed on the amended report to claim the credit for the lease. The following tables show the values that should be filed on the amended report:

DESCRIPTION ORIGINAL REPORT FILED WITH THE LEASE TYPE 2 FIRST TRANSACTION REQUIRED ON AMENDED REPORT TO CREDIT OUT VALUES FOR LEASE TYPE 2 NET ADJUSTMENT FOR LEASE TYPE 2
Your Value $ 7,700 ($ 7,700) $ 0
Less Marketing Costs $ 1,420 ($ 1,420) $ 0
Net Taxable Value $ 6,280
($7,700 - $1,420 = $6,280)
($ 6,280) $ 0
Tax Due $ 471
($6,280 x .075 = $471)
( $ 471) $ 0
DESCRIPTION SECOND TRANSACTION REQUIRED ON AMENDED REPORT TO ADD VALUES FOR EXEMPT TYPE 11
Your Value $ 7,700
Less Marketing Costs $ 1,420
Net Taxable Value $ 0 (100% exempt) (This field must be manually calculated.)
Tax Due $ 0 (This field is calculated by the computer system.)
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