Drilling Permit Numbers
Natural gas taxes are to be reported and paid timely even if the Railroad Commission (RRC) has not assigned a lease number for a new lease. When this occurs, in place of the lease number, the drilling permit number should be reported in line 8 of the Purchaser and/or Producer Lease Detail Supplement Report Forms. The drilling permit number indicator in line 8 of the report form should be marked as "YES".
When a lease number has been assigned by the RRC, amended reports must be filed to replace the drilling permit number with the newly assigned RRC lease number. Once the assigned lease number is corrected, the drilling permit number indicator in line 8 must then be marked as "NO". All periods that were reported under a drilling permit number must be corrected accordingly.
As a courtesy, the Comptroller's office will send a notification letter to the taxpayer that a particular drilling permit number has been assigned a lease number by the RRC. An example of a drilling permit letter to a taxpayer and a list indicating the drilling permit number and lease number is shown on the following page.