OAR 150-324-0020: Gross Sales Value Subject to Production Tax

(1) “Sales price” is the per therm price due the producer at the well head determined as follows: Sales Price (or well head price) = Commodity Price less Delivery Charge. (2) Definitions: (a) “Commodity Price” is the Oregon Public Utility Commissioner approved price which the using gas distribution company may pay for natural gas delivered to its lines. (b) “Delivery Charge” is the cost of moving and processing the natural gas from the originating well head to the lines of the using gas distribution company. (3) Excluded from the delivery charge is any allowance for anticipated gas production tax. (4) “Monthly unadjusted gross sales value” is the product of the therms of net gas produced and saved from a well during a month, less the therm equivalent of exempt royalty or other interest owned by municipal or political subdivisions, times the sales price. (5) “Quarterly unadjusted gross sales value” is the sum of monthly unadjusted gross sales values for the months in the calendar quarter for which the tax is being determined. (6) The gross sales value subject to production tax is the quarterly unadjusted gross sales value less $3,000 as provided in ORS 324.080.