of the year following the year of production. The Tax Commission shall not accept or pay any claim for refund filed on or after July 1 of each year following the year of production. D. For oil and natural gas produced from qualifying leases in calendar years 2015 through 2020, the total amount of refunds authorized in this section for each calendar year shall not exceed Twelve Million Five Hun- dred Thousand Dollars ($12,500,000.00) for all products combined. If the amount of claims exceeds Twelve Million Five Hundred Thousand Dollars ($12,500,000.00), the Tax Commission shall determine the percentage of the refund which establishes the proportionate share of the refund which may be claimed by any taxpayer so that the maximum amount authorized by this subsection is not exceeded. E. Any operator making application for an economically at-risk oil or gas lease status under the provi- sions of this section shall submit documentation to the Tax Commission, as determined by the Tax Commis- sion to be appropriate and necessary including, but not limited to, the operator’s federal income tax return for the previous year for such lease. E. F. For the purposes of this section, determination of the economically at-risk oil or gas lease status shall be made by subtracting from the gross revenue of that lease for the previous calendar year severance taxes, if any, royalty, operating expenses of the lease to include expendable workover and recompletion costs for the previous calendar year, and including overhead costs up to the maximum overhead percentage allowed by the Council of Petroleum Accountants Societies (COPAS) guidelines. For the purposes of this calculation, depreciation, depletion or intangible drilling costs shall not be included as lease operating expenses. F. G. The Tax Commission shall have sole authority to determine if an oil or gas lease qualifies for certi- fication as an economically at-risk oil or gas lease and shall make the determination within sixty (60) days after an application is filed for economically at-risk oil or gas lease status. The Tax Commission shall promulgate rules governing the certification process. G. H. Except as provided in subsection H I of this section, gross production tax exemptions under the provisions of this section shall be limited to production from calendar years 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012 and 2013; provided, no claims for refunds for calendar years provided in this subsection shall be paid on or after December 31, 2015. H. I. Gross production tax exemptions claimed under the provisions of this section shall be limited to production from calendar years 2014 through 2020; provided, no claims for refunds for the calendar years 2014 through 2020 and 2015 shall be claimed or paid more than eighteen (18) months after the first day of the fiscal year during which the refund is first available. For production in calendar years 2016 through 2020, no claim for refund filed on or after July 1 following the calendar year shall be claimed or paid. SECTION 2. This act shall become effective July 1, 2016. SECTION 3. It being immediately necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and approval.
Passed the Senate the 25th day of May, 2016.
Presiding Officer of the Senate
Passed the House of Representatives the 19th day of May, 2016. Presiding Officer of the House of Representatives
G r ow t h T h r o u g h E d u c a t i o n - J u l y / Au g u s t / S e p t emb e r 20 1 6 1 9
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