Section 6-6 - Persons Responsible for Remittance of Tax; Take in Kind Election Term, Termination and Exchange of Information (a) This section identifies the persons responsible for remitting payment of ad valorem and severance taxes on mineral production in this state. For solid mineral production the mine operator shall report and remit tax payments for 100% of the production from the producing property. - (i) All Ad Valorem taxes on the gross product from an oil or gas property attributable to any working or non-working interest owner shall be remitted by the interest owner or may be remitted on behalf of the interest owner in proportion to his ownership interest by the operator.
- (ii) All severance taxes on the gross product from an oil or gas property attributable to any working or non-working interest owner shall be remitted by the operator except as stated in Section 6(a) (iii).
- (iii) All taxes on the gross product attributable to any interest owner electing to take in kind shall be remitted by the interest owner or on behalf of the interest owner in proportion to his ownership interest by the operator. An election for operator reporting and remittance of ad valorem and severance tax shall be allowed if, on or before January 1st of the production year in which operator reporting shall commence, the take in kind interest owner notifies the operator and the Mineral Division in writing of the intent to have the operator report and remit on behalf of the take in kind interest owner. The operator or other entity reporting and remitting the interest owner's gross product (ad valorem) tax must also report and remit severance tax.
- (iv) An election made under this section shall remain in effect until terminated by the interest owner or by the Department pursuant to paragraph (v) of this subsection.
- (v) An operator may petition the Department to terminate the interest owner election on the basis of either failure to provide the necessary information for reporting taxable volume and value, or failure to remit to the operator on or before the date the taxes are due, or as extended by written agreement between the parties, the amount of taxes owed by the take in kind interest owner. Notice and opportunity for a hearing shall be provided to the operator and interest owner, with a final decision by the Department within ninety (90) days following receipt of the petition.
(b) In order to minimize erroneous reporting, the following exchange of information shall occur: - (i) Exchange of Oil and Natural Gas Data. On or before the second Monday in February, the take in-kind interest owner shall provide the operator an annual summary of monthly volumes taken in kind by property name and by property identification number as assigned by the Mineral Tax Division. The take in-kind interest owner may negotiate an extension of time for cause with the operator not to exceed thirty days.
- (ii) The operator shall notify the take in-kind interest owner of any discrepancies in volume, property name or property identification number within thirty days of receipt of the take in-kind interest owner's data.
- (iii) Penalty. Failure to comply with the requirements of paragraphs (i) and (ii) above may subject the taxpayer to a penalty of up to $1000 per property. This penalty is authorized by W.S. 39-14-208(d)(i). A copy of the cover letter listing the properties and property identification numbers for which data is being exchange shall be mailed to the Mineral Tax Division.