Does Texas have a ‘conservation tax’?
Texas has a severance tax on both oil and gas. This is generally 4.6% of oil sales and 7.5% of gas and liquids sales. However, some companies get reduced rates from TX Comptroller on gas for wells meeting certain requirements. Texas also has an oil field cleanup regulatory fee on OIL (5/8 of $0.01 per bbl produced - calculated as $0.00635 X # bbl produced) and GAS (1/15 of $0.01 per mcf - calculated as $0.0006667 X # mcf into the pipeline).
OK, so that must mean the ‘oil field cleanup regulatory fee’ is a.k.a. the ‘conservation tax’ on Callon’s statement. Thanks!
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