PROD/WPT is just a heading for where they show the Production Tax. It was set up for the Windfall Profit Tax and never got changed. Now I am doing the math on that well and finding that the rate is about 7.9% and have asked for an explanation since it appears that Oklahoma is a 7% tax rate.
Production and state taxes are normal and not part of the “post production costs”. I look up new wells on the OTC site and check the dates and tax levels. Some wells get a lower tax rate for a few years.
I really appreciate the help here and I believe I understand what you are saying, However, I see no way to verify the figures. They give a different sales price for both the regular and taken in kind figures. I don’t know what to use as the price per mcf to try to calculate what I am owed. To complicate matters even more the production reported to the Oklahoma Corporate commission for well production does not match what my statements are saying and they only show the gas volume not the liquid. And they have now told me that the Taken-in-kind portion includes both gas and liquid with no breakdown of what is what. Is there anyway to make sense of all of this?
This is not an area with an easy clear answer. Gas is measured at well and volume reported to state. Some gas may be consumed as lease use. Rest goes into pipeline to gas plant. Some of that volume is lost in transmission such as when pipeline fuels compressors to keep gas moving. At plant, gas is processed to separate higher value liquids for sale. Plant operations use some of the gas so that is gone. Remaining dry gas is smaller volume and sold. You would need to get the monthly gas plant statements to reconcile the original volume into pipeline, volume consumes]d along the way, volume used in plant operations (whether burned or turned into liquids) and remaining gas at end tailgate of plant. Value (price) of lease use gas is higher because it is the gas and the nonfiltered liquids. Value of dry gas at tailgate is lower because the liquids have been removed. Volume reported to all states is volume of gas including nonfiltered liquids as it comes out of well. Sales may be reported separately to state for dry gas and liquids and lease use gas. As far as I know, Texas is the only state which posts the sales on line.
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