2005 Idaho Code - 47-330 — OIL AND GAS CONSERVATION FUND CREATED -- TAX

                                  TITLE  47
                               MINES AND MINING
                                  CHAPTER 3
                        OIL AND GAS WELLS -- GEOLOGIC
                     INFORMATION, AND PREVENTION OF WASTE
    47-330.  OIL AND GAS CONSERVATION FUND CREATED -- TAX. For the purpose of
paying the expenses of administration of this act, there is hereby established
a special fund to be known as the "Oil and Gas Conservation Fund", and there
is hereby levied and imposed on all oil and gas produced, saved and sold or
transported from the premises in Idaho where produced a tax not to exceed five
(5) mills per barrel of oil or per 50,000 cubic feet of gas. The commission
shall by order fix the amount of such charge in the first instance and shall
thereafter at its first meeting after the commencement of its fiscal year,
determine such charge for the ensuing year as in its judgment the expenses
chargeable against the oil and gas conservation fund may require; provided
that the amounts fixed by the commission shall not exceed the limit
hereinabove prescribed. It shall be the duty of the commission to enforce
collection of such assessments and to make such rules and regulations as may
be necessary to enforce such charges. All money so collected shall be remitted
to the state treasurer for deposit in the oil and gas conservation fund, which
fund is hereby created in the office of the state treasurer of the state of
Idaho, and is hereby appropriated and made available for defraying the
expenses of the commission in carrying out the provisions of this act. The
commission shall audit all bills for salaries and expenses incurred in the
enforcement of this act that may be payable from the oil and gas conservation
fund which shall be audited, allowed and paid as to the claims against the
state. The persons owning an interest (working interest, royalty interest,
payments out of production, or any other interest), in the oil and gas, or in
the proceeds thereof, subject to the charge hereinabove provided for, shall be
liable for such charge in proportion to their ownership at the time of
production. The charge so assessed and fixed shall be payable quarterly, and
the sum so due shall be remitted to the commission, on or before the
twenty-fifth (25th) of the next month following the preceding quarter in which
the charge accrued, by the producer on behalf of himself and all other
interested persons; provided, however, in the event of a sale of oil or gas
within this state said charge may be payable by the purchaser thereof. Any
such charge not paid within the time herein specified shall bear interest at
the rate of one per cent (1%) per month from the date of delinquency until
paid, and such charge, together with the interest, shall be a lien upon the
oil or gas against which the same is levied and assessed, or, if the same is
not available for a lien, upon any oil or gas owned or held by the persons
responsible for paying said charge. The person remitting the charge, as herein
provided, is hereby empowered and required to deduct from any amounts due the
persons owning an interest in the oil and gas, or in the proceeds thereof, at
the time of production a proportionate amount of such charge before making
payment to such persons. This section shall apply to all lands in the state of
Idaho, anything in this act to the contrary notwithstanding; provided,
however, there shall be exempted from the charge hereinabove levied and
assessed the following, to-wit:
    (a)  The interest of the United States of America and the interest of the
state of Idaho and the political subdivisions thereof in any oil or gas or in
the proceeds thereof.
    (b)  The interest of any Indian or Indian tribe in any oil or gas or the
proceeds thereof, produced from lands subject to the supervision of the United
States.
    (c)  Oil and gas used in producing operations or for repressuring or
recycling purposes.