How is the average daily production of a gas well, during a calendar month, calculated in determining whether or not the well qualifies for an exemption from the severance tax on gas?
A 39: The average daily production of a gas well for a calendar month is calculated as follows. Gross value of production from the gas well in the applicable month Number of well producing days in the month The number of well producing days is determined as follows. Number of well operating hours in the month 24 Neither gross value nor the well operating hours should include data from days during the month when there has been a significant disruption of production as defined in K.S.A. 79-4216(m). Q 40: If a gas well is open to the pipeline but does not produce gas for sale because of high line pressure, can the time during which no sale occurs be included in the calculation of average daily production for that well? A 40: Yes. As long as the gas well is open to the pipeline, a disruption of production has not occurred. Therefore, the time during which no sale occurred can be included in the calculation of average daily production for the gas well. Q 41: If the value of production from
Related Questions
- How is the average daily production of a gas well, during a calendar month, calculated in determining whether or not the well qualifies for an exemption from the severance tax on gas?
- Is average daily oil production calculated on the basis of production or sales volumes?
- What is the average temperature in South Carolina for the month of March?
