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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 19. STATE SALES TAX EXEMPTION FOR ELECTRICITY SOLD FOR OPERATION OF ENHANCED RECOVERY METHODS ON A SPACING UNIT OR LEASE |
SECTION 165:10-21-95. General
Latest version.
- (a) Scope. This Part deals with the designation by the Oklahoma Corporation Commission (Corporation Commission or Commission) of enhanced recovery methods on a spacing unit or lease for the purpose of an exemption, beginning July 1, 2006, from sales taxes levied on electricity sold to an oil and gas operator for such operations, as provided in 68 O.S. §1357(35).(b) Distinction from designation as enhanced recovery project pursuant to application for underground injection, spacing or unitization. The designation of enhanced recovery methods on a spacing unit or lease pursuant to this Part shall be separate and distinct from the designation of an enhanced recovery project otherwise provided by Commission rules. The Commission's designation pertaining to the instant sales tax exemption shall be made by application under this Part and not as a result of an application for: (1) enhanced recovery project designation under OAC 165:10-5-4; (2) drilling and spacing units under OAC 165:10-15-1 and OAC 165:10-15-18 (oil allowables), OAC 165:10-17-2 through 10-17-16 (gas allowables), OAC 165:10-3-28 (horizontal drilling), or any spacing application under OAC 165:10-1-22; or (3) unitization under Title 52 O.S., § 287.1 et seq. and OAC 165:5-7-20.