Arkansas Code § 26-58-206 - Permit for Credit

(a) A producer in this state wishing to obtain the benefits of the provisions for this subchapter shall make application to the Director of the Department of Finance and Administration for a permit to obtain credit on severance taxes due on all oil or natural gas produced in salt-water-producing wells of the producer as provided in this subchapter.

(b) The application shall list:

(1) The name and address of the producer;

(2) The number and location of all salt-water-producing wells of the producer; and

(3) A certified copy of a certificate from the Arkansas Pollution Control and Ecology Commission and the Oil and Gas Commission certifying that all salt water produced in the production of oil or natural gas in the wells is being disposed of in an approved underground saltwater disposal system.

(c) If the director determines that the producer has complied with the provisions of this subchapter and the rules established by the director, the director shall issue a permit to the producer.

(d) The permit shall entitle the producer to obtain a severance tax credit on all oil or natural gas produced in salt-water-producing wells in the amount provided in this subchapter.

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Last modified: November 15, 2016