Just started to receive payments for a new well in Grady County from EOG. And I am seeing something new to me. They have deductions for Conservation Tax on the oil. I haven’t seen this deduction on other statements from other wells before. I wanted to ask if others have seen this deduction before? I am going to assume that this is proper; however, when I Google ‘OK Conservation oil tax’ I find discussions on Severance Tax.
So, I am seeing deductions for Severance 4%, Conservation 0.001%, Environment 0.1%. I am guessing these are normal and are subject to the normal use at tax time.
Thanks for any comments.