Oil and Gas Licensing
NOTICE TO ALL OIL AND GAS PRODUCERS WITHIN THE COMANCHE NATION JURISDICTION:
Includes Comanche, Kiowa, Caddo, Grady, Stephens, Jefferson, Tillman, and Cotton counties.
The Comanche Nation requires an oil or gas Lessee or Operator to obtain a License prior to conducting or continuing any such oi or gas production activities with Comanche jurisdiction. The relevant parts of the COMANCHE NATION GENERAL REVENUE & TAXATION ACTO OF 1995, Section 714 of the Act reads as follows:
Section 714 - Requirements to Obtain a License
Every Lessee desiring to lease mineral rights from an Indian or tribal Lessor...[and] every Operator desiring to engage in oil or gas production...within the Comanche Nation jurisdiction must apply for and receive from the Comanche Tax Commission a Leasing License...[or] an Oil and Gas Production License prior to entering into...establishing or continuing [such activity].
YOU MUST HAVE A LICENSE IN ORDER TO LEASE OR PRODUCE OIL AND GAS
The fee for such a license is $100.00 (one hundred dollars) and is valid for on year from issuance.
YOU MUST PAY OIL AND GAS PRODUCTION TAXES MONTHLY
The Comanche Nation levies a severance tax on the value of oil and gas produced from within Comanche jurisdiction pursuant to Part Seven of the General Revenue and Taxation Act of 1995 ("Act"). The relevant parts of Sections 702 and 703 of the Act read as follows:
SECTION 702 & 703 - Tax Levied on Oil [or] Gas (as the case may be):
There is hereby levied tax equal to eight percent (8%) of the taxable value of all petroleum or other crude, condensate, or mineral oil, ...[and] all gas, natural gas, casinghead gas, associated natural gas liquids, and other valuable hydrocarbon substances...produced, severed, saved, or removed from any land within the jurisdiction of the Comanche Nation.
The severance tax is in lieu of any other Comanche sales taxes. Stripper wells are not exempted from this tax. However, no tax is due on the production attributable to the roylaty interest of an Indian or tribal Lessor of trust or restricted land. The Lessee is responsible for reporting the value of the production and paying the tx every month. Our office will supply you with the forms upon which to report your production to the Comanche Nation Tax Commission.
FAILURE TO PAY OIL OR GAS TAXES MAY CAUSE FORECLOSURE OF THE LEASE.
Commission representatives may conduct field inspections and view any records concerning production activities within Comanche jurisdiction. You must keep records of your production activities for at least five (5) years. Failure to pay oil or gas taxes could result in foreclosure proceedings against the Lessee's interest which may be sold to pay for delinquent taxes. In addition, the Commission may revoke a Lessee's license to maintain production activities.