Production Taxes Overview

This document provides a detailed overview of production-taxes in an economic model. The main property is data, which contains a state and a rows array. Each row in the array defines a single production tax entry with its classification, timing criteria, and rate information.

Example Response

{
    "id": "6463e9e105bfb500218f828e",
    "copiedFrom": null,
    "name": "Production Taxes Demo",
    "tags": [],
    "unique": false,
    "createdBy": "6283eac6241df8001331f6a3",
    "lastUpdatedBy": "6283eac6241df8001331f6a3",
    "createdAt": "2023-05-16T20:38:57.818Z",
    "updatedAt": "2023-05-16T23:20:25.827Z",
    "data": {
        "state": "texas",
        "rows": [
            {
                "key": "oil",
                "category": "severance_tax",
                "criteria": "entire_well_life",
                "period": ["Flat"],
                "value": [4.6],
                "unit": "pct_of_revenue"
            },
            {
                "key": "gas",
                "category": "severance_tax",
                "criteria": "dates",
                "period": ["01/2022", "01/2023"],
                "value": [7.5, 0],
                "unit": "pct_of_revenue",
                "shrinkageCondition": "unshrunk",
                "calculation": "nri",
                "escalation": "64629fb11cb0cc0021eaaa38"
            },
            {
                "key": "ngl",
                "category": "severance_tax",
                "criteria": "oil_rate",
                "period": [3, 6, 9],
                "value": [7.5, 0, 0],
                "unit": "dollar_per_bbl",
                "shrinkageCondition": "unshrunk",
                "calculation": "nri",
                "rateType": "gross_well_head",
                "rateRowsCalculationMethod": "non_monotonic"
            },
            {
                "key": "ad_valorem_tax",
                "category": "ad_val_tax",
                "criteria": "offset_to_fpd",
                "period": [20],
                "value": [100],
                "unit": "dollar_per_boe",
                "calculation": "nri",
                "deductSeveranceTax": false
            },
            {
                "key": "ad_valorem_tax",
                "category": "pa_if_h_2021",
                "criteria": "offset_to_fpd"
            }
        ]
    }
}

Data Structure

• data: (required) An object containing the state and rows properties that define all production tax entries for the model.

data

• state: (required) A string representing the US state whose tax rules apply. See state for valid values.
• rows: (required) An array of production tax row objects. Maximum 5000 rows. Each object represents one tax entry. See rows for the full field list and constraints.

rows

Each element in the rows array is an object with the following properties:

Required fields

• key: (required) The production stream this row applies to. See key for valid values and the key → category constraint.
• category: (required) The tax category. Valid values depend on key. See category and the key → category constraint.
• criteria: (required) The timing or rate basis used to define the tax schedule. Valid values depend on category. See criteria and the category → criteria constraints.
• period: (required for severance_tax and ad_val_tax categories) An array whose element type and valid range depend on criteria. Must not be provided for pa_if_* categories. See period for details.
• value: (required for severance_tax and ad_val_tax categories) An array of numbers that must match the length of period. Must not be provided for pa_if_* categories. See value.
• unit: (required for severance_tax and ad_val_tax categories) The unit of measurement for the value entries. Valid values depend on key. Must not be provided for pa_if_* categories. See unit for valid values and the key → unit constraint.

Optional fields

• description: (optional) A free-text description of the row. Maximum 200 characters.
• shrinkageCondition: (optional) Whether volumes are measured before or after shrinkage. Possible values are "shrunk" or "unshrunk". Required when unit is dollar_per_bbl or dollar_per_mcf. Not allowed when unit is dollar_per_month, pct_of_revenue, or dollar_per_boe.
• escalation: (optional) An escalation model ID (example: "6463e9e105bfb500218f828e") or "none".
• calculation: (optional) The working interest basis for the tax. See calculation for valid values.
• deductSeveranceTax: (optional) Boolean. When true, severance tax is deducted before applying this row's ad valorem rate. Not allowed when category is severance_tax.
• rateType: (optional) The rate type. See rateType. Only allowed when criteria is oil_rate, gas_rate, or water_rate.
• rateRowsCalculationMethod: (optional) How rate-based rows are applied. Possible values are "monotonic" and "non_monotonic". Only allowed when criteria is oil_rate, gas_rate, or water_rate.

"data": {
    "state": "texas",
    "rows": [
        {
            "key": "oil",
            "category": "severance_tax",
            "criteria": "entire_well_life",
            "period": "Flat",
            "value": 4.6,
            "unit": "pct_of_revenue",
            "calculation": "nri"
        }
    ]
}

Definitions

calculation

This property is a string defining the working interest basis for the tax calculation. Possible values are:

• "100_pct_wi"
• "lease_nri"
• "lease_nri_minus_one"
• "nri"
• "nri_minus_one"
• "one_minus_nri"
• "one_minus_lease_nri"
• "one_minus_wi"
• "wi"
• "wi_minus_one"

category

The tax category for this row. Valid values depend on key — see the key → category constraint.

• "severance_tax" — State severance tax applied to a production stream. Only valid when key is oil, gas, ngl, or drip_condensate.
• "ad_val_tax" — Ad valorem (property) tax. Only valid when key is ad_valorem_tax.
• "pa_if_h_2021" — Pennsylvania Impact Fee, horizontal well, 2021 schedule. Only valid when key is ad_valorem_tax. period, value, and unit must not be provided.
• "pa_if_h_2022_2024" — Pennsylvania Impact Fee, horizontal well, 2022–2024 schedule. Only valid when key is ad_valorem_tax. period, value, and unit must not be provided.
• "pa_if_v_2021" — Pennsylvania Impact Fee, vertical well, 2021 schedule. Only valid when key is ad_valorem_tax. period, value, and unit must not be provided.
• "pa_if_v_2022_2024" — Pennsylvania Impact Fee, vertical well, 2022–2024 schedule. Only valid when key is ad_valorem_tax. period, value, and unit must not be provided.

criteria

The timing or rate basis used to segment the tax schedule. Valid values depend on category — see the category → criteria constraints.

• "entire_well_life" — A single flat rate applied for the entire well life. period must be "Flat" and value must be a single number. Valid for severance_tax and ad_val_tax.
• "offset_to_fpd" — Months offset from first production date. period is an array of numbers from 0 to 1200. Valid for all non-PA IF categories.
• "offset_to_as_of_date" — Months offset from the as-of date. period is an array of numbers from 0 to 1200. Valid for severance_tax and ad_val_tax.
• "offset_to_discount_date" — Months offset from the discount date. period is an array of numbers from 0 to 1200. Valid for severance_tax and ad_val_tax.
• "offset_to_first_segment" — Months offset from the first forecast segment. period is an array of numbers from 0 to 1200. Valid for severance_tax and ad_val_tax.
• "offset_to_end_history" — Months offset from end of production history. period is an array of numbers from 0 to 1200. Valid for severance_tax and ad_val_tax.
• "dates" — Calendar month boundaries. period is an array of ISO date strings (YYYY-MM-DD) between 1900-01-01 and 2262-04-01. Dates are stored as MM/yyyy. Valid for severance_tax and ad_val_tax.
• "oil_rate" — Oil production rate thresholds in Bbl/d. period is an array of numbers from 0 to 10000000000. Valid for severance_tax and ad_val_tax.
• "gas_rate" — Gas production rate thresholds in Mcf/d. period is an array of numbers from 0 to 10000000000. Valid for severance_tax and ad_val_tax.
• "water_rate" — Water production rate thresholds in Bbl/d. period is an array of numbers from 0 to 10000000000. Only valid when category is ad_val_tax.
• "spud_date_from_headers" — Spud date derived from well headers. Only valid for pa_if_* categories.
• "spud_date_from_schedule" — Spud date derived from the well schedule. Only valid for pa_if_* categories.

deductSeveranceTax

A Boolean that determines whether severance tax is deducted before applying this row's ad valorem rate. Possible values are true and false. Not allowed when category is severance_tax.

description

A free-text string that can be used to annotate the row. Maximum length is 200 characters.

key

The production stream this row applies to. Possible values are:

• "oil" — Oil stream. category must be severance_tax.
• "gas" — Gas stream. category must be severance_tax.
• "ngl" — Natural gas liquids stream. category must be severance_tax.
• "drip_condensate" — Drip condensate stream. category must be severance_tax.
• "ad_valorem_tax" — Ad valorem tax. category must be one of ad_val_tax, pa_if_h_2021, pa_if_h_2022_2024, pa_if_v_2021, or pa_if_v_2022_2024.

Key and category constraints

key	Allowed category values
oil	severance_tax
gas	severance_tax
ngl	severance_tax
drip_condensate	severance_tax
ad_valorem_tax	ad_val_tax, pa_if_h_2021, pa_if_h_2022_2024, pa_if_v_2021, pa_if_v_2022_2024

Category and criteria constraints

category	Allowed criteria values
severance_tax	entire_well_life, offset_to_fpd, offset_to_as_of_date, offset_to_discount_date, offset_to_first_segment, offset_to_end_history, dates, oil_rate, gas_rate
ad_val_tax	entire_well_life, offset_to_fpd, offset_to_as_of_date, offset_to_discount_date, offset_to_first_segment, offset_to_end_history, dates, oil_rate, gas_rate, water_rate
pa_if_h_2021, pa_if_h_2022_2024, pa_if_v_2021, pa_if_v_2022_2024	offset_to_fpd, spud_date_from_headers, spud_date_from_schedule

Note: water_rate criteria is only valid for category: ad_val_tax.

Key and unit constraints

key	Allowed unit values
oil	dollar_per_month, dollar_per_bbl, pct_of_revenue
gas	dollar_per_month, dollar_per_mcf, pct_of_revenue
ngl	dollar_per_month, dollar_per_bbl, pct_of_revenue
drip_condensate	dollar_per_month, dollar_per_bbl, pct_of_revenue
ad_valorem_tax	dollar_per_month, dollar_per_boe, pct_of_revenue

period

An array whose element type depends on the criteria value. period and value arrays must always have the same length. Maximum 5000 items.

criteria	period format	Range
entire_well_life	Must be the string "Flat". A single value (not an array) is expected on input.	N/A
offset_to_fpd, offset_to_as_of_date, offset_to_discount_date, offset_to_first_segment, offset_to_end_history	Array of numbers	0 – 1200 per item
dates	Array of ISO date strings (YYYY-MM-DD). Stored as MM/yyyy.	1900-01-01 – 2262-04-01
oil_rate, gas_rate, water_rate	Array of numbers	0 – 10000000000 per item
pa_if_* categories	Must not be provided	N/A

rateRowsCalculationMethod

A string representing the method used when applying rate-based rows. Only allowed when criteria is oil_rate, gas_rate, or water_rate. Possible values are "monotonic" and "non_monotonic".

rateType

A string representing the rate basis. Only allowed when criteria is oil_rate, gas_rate, or water_rate. Possible values are:

• "gross_well_head"
• "gross_sales"
• "net_sales"

shrinkageCondition

A string defining whether volumes are measured before or after gas shrinkage.

• Required when unit is dollar_per_bbl or dollar_per_mcf.
• Not allowed when unit is dollar_per_month, pct_of_revenue, or dollar_per_boe.

Possible values are "shrunk" or "unshrunk".

state

A string representing the US state whose production tax rules apply. Possible values are:

• "custom"
• "alaska"
• "alabama"
• "arkansas"
• "arizona"
• "california"
• "colorado"
• "florida"
• "idaho"
• "indiana"
• "kansas"
• "kentucky"
• "louisiana"
• "maryland"
• "michigan"
• "mississippi"
• "montana"
• "north_dakota"
• "nebraska"
• "new_mexico"
• "nevada"
• "new_york"
• "ohio"
• "oklahoma"
• "oregon"
• "pennsylvania"
• "pennsylvania horizontal"
• "south_dakota"
• "tennessee"
• "texas"
• "utah"
• "virginia"
• "west_virginia"
• "wyoming"

unit

The unit of measurement applied to each value entry. Valid values depend on key — see the key → unit constraint. Required for severance_tax and ad_val_tax categories. Must not be provided for pa_if_* categories.

• "dollar_per_month" — A fixed dollar amount charged per month.
• "dollar_per_boe" — Dollar amount per barrel of oil equivalent. Only valid for key: ad_valorem_tax.
• "dollar_per_bbl" — Dollar amount per barrel. Valid for oil, ngl, and drip_condensate. Requires shrinkageCondition.
• "dollar_per_mcf" — Dollar amount per thousand cubic feet of gas. Only valid for key: gas. Requires shrinkageCondition.
• "pct_of_revenue" — Percentage of revenue.

value

An array of numbers, one per period entry, representing the tax rate or amount for each segment. period and value arrays must always have the same length. Maximum 5000 items.

• For entire_well_life, a single number (not an array) is accepted on input.
• Required for severance_tax and ad_val_tax categories.
• Must not be provided for pa_if_* categories.