Texas Tax Code

§ 202.002 — PRODUCTION AND MEASUREMENT OF OIL

TX § 202.002Title 2. STATE TAXATION · Part I. SEVERANCE TAXES · Ch. 202. OIL PRODUCTION TAX · Art. A. GENERAL PROVISIONS

Statute text

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(a)"Production" means the total gross amount of oil produced, including royalty and other interests.

(b)The amount of production shall be measured or determined by:

(1)tank tables compiled to show 100 percent of the capacity of the tanks without deduction for overage or losses in handling; or

(2)meter or other measuring devices that accurately determine the amount of production.

(c)If the amount of production has been measured or determined by a tank table compiled to show less than 100 percent of the full capacity of a tank, the amount must be raised to a basis of 100 percent.

(d)When measuring or determining the amount of production, a reasonable deduction may be made for basic sediment and water and a reasonable allowance may be made for correction of the temperature to 60 degrees Fahrenheit.

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Legislative history

Acts 1981, 67th Leg., p. 1736, ch. 389, Sec. 1, eff. Jan. 1, 1982.