Natural Gas Severance

Tax is collected from the Operator/Producer on the market value of gas sold. The 1st Purchaser of natural gas is required to receive advanced ascertainment that the Operator/Producer holds an Arkansas Natural Gas Severance Tax Permit. If advanced ascertainment is not received, the 1st Purchaser is required to withhold natural gas severance tax on the gas purchase. The Operator/Producer and 1st Purchaser have monthly reporting responsibilities. The applicable tax rates of 1.25%, 1.5%, and 5.0% are dependent on the well classification by the Arkansas Oil and Gas Commission. 

Applicable Statutes: AR Code Ann. §26-58-101 et seq., §26-58-201 et seq.

DFA Rule(s)

Title Posted
2008-4 Natural Gas Severance Tax Rules 08/12/2010

Forms

Title Posted
MT-177 High-Cost Gas Well Classification Extension Request 02/05/2014
Salt Water Disposal Permit Registration 07/10/2012

Instructions

Title Posted
Arkansas Allowable Marketing Costs 10/08/2012
MT-178 | Operator/Producer Activity Report Instructions 08/25/2010
MT-180 | Operator/Producer Report Instructions 08/25/2010
MT-180S | Operator/Producer Well-by-Well Activity Report Instructions 08/25/2010

Statistics

Title Posted
Natural Gas Severance Revenue 01/2003 to Current 07/03/2017
Natural Gas Severance Revenue FYE 2018 07/03/2018
Natural Gas Severance Revenue FYE 2019 07/05/2019
Natural Gas Severance Revenue FYE 2020 07/02/2020
Natural Gas Severance Revenue FYE 2021 11/09/2020
Natural Gas Severance Tax MCF by Period 09/01/2020