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Oklahoma Administrative Code (Last Updated: March 11, 2021) |
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TITLE 165. Corporation Commission |
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Chapter 10. Oil & Gas Conservation |
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Subchapter 21. Applications for Tax Exemptions |
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Part 17. SALES TAX EXEMPTION FOR ELECTRICITY AND ASSOCIATED DELIVERY AND TRANSMISSION SERVICES SOLD FOR OPERATION OF RESERVOIR DEWATERING PROJECT AND/OR UNIT |
SECTION 165:10-21-91. Definitions
Latest version.
- The following words and terms, when used in this Part, shall have the following meaning, unless the context clearly indicates otherwise:"Reservoir dewatering project" means an oil or gas production project covering a specified area and reservoir(s), which utilizes water recovery and disposal technology to increase water production in the initial phase of reservoir development, with the primary purpose of increasing oil or gas production from the reservoir(s) as a result of the dewatering process. For the purpose of qualification for the sales tax exemption pursuant to this Part, the definition of reservoir dewatering project shall require the proof that the reservoir's initial water-to-oil ratio is greater than or equal to five-to-one (5-to-1), or is greater than or equal to the appropriate gas-to-water ratio calculated using the gas conversion factor outlined in OAC 165:10-21-90(d)."Reservoir dewatering unit" means an area and reservoir(s) designated a reservoir dewatering project where a reservoir dewatering process is conducted as defined in this Part.