Frequently Asked Questions
Taxation - Mineral
What information must I provide to find a Kansas Department of Revenue lease code number?
- County name
- Legal description
- Current operator
- Current first purchaser
- Well name
- Date of first production
- Depth of well
- Commodity type, oil or gas
When applying for a minimum production exemption from severance
tax on oil how many months of data does the Department require?
The most recent six months of production.
When does the initial oil exemption period begin for a minimum
production exemption?
The exemption begins with the first qualifying
month of data submitted and will be effective for twenty-four months.
The Department will provide
a credit of the payments made during the six-month period required
to support the application when requested by the first purchaser.
How is the average daily production of a gas well, for a calendar
month, calculated to determine if the well qualifies for an exemption
from the severance tax on gas?
Gross value of production from the gas well, divided by the number
of well producing days in the month. The number of well producing
days is determined as follows: the number of well flow hours in
the month, divided by 24. Flow hour documentation must be made
available upon request.