SECTION 710:10-8-2. Exempt properties

(a)   The following property shall be eligible for exemption from ad valorem taxation pursuant to the provisions paragraphs (S) and (T) of Section 1001 of Title 68:

(1)   Wellhead equipment, including compression equipment that is used for injection purposes on enhanced oil and gas recovery projects or compression equipment actually used in the process of bringing oil or gas, or both, to the surface;

(2)   Pumping units and any other devices designed to raise hydrocarbons to the surface;

(3)   Tubing, casing and other downhole equipment;

(4)   Lease production tanks, including flow tanks and water tanks;

(5)   Production units, separators, heaters, treaters, and any other devices designed to remove water and contamination from the hydrocarbons which are located upstream from lease production tanks, custody transfer points, or where production is commingled with that of other leases;

(6)   Flow lines going from the wellhead to production units, separators, heaters, treaters, and lease production tanks, including flow tanks and water tanks;

(7)   Residue lines used to return processed gas to the lease for use in powering production equipment or for injection purposes. If the lines transport gas which is sold or used for any other purpose, only that percentage of the value of the lines that equals the percentage of the volume of gas used to power production equipment or for injection shall qualify for the exemption;

(8)   Lease production meters;

(9)   Miscellaneous production equipment, including but not limited to valves, piping, and electrical accessories; and,

(10)   Disposal systems which are not for commercial purposes and wellbore and non-recoverable down-hole material, including casing, actually used in the commercial disposal of waste materials produced with oil and gas.

(b)   Items enumerated in (a) of this Section are not intended to be exclusive or exhaustive.

[Source: Added at 21 Ok Reg 2570, eff 6-25-04; Amended at 34 Ok Reg 2040, eff 9-11-17]