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Relentless severance tax recovery.


Greater recovery means higher profits, and we’re not afraid to dig deep into state tax codes to help you get there. Our team scours your financial records and tax filings, scrutinizing every detail to identify potential overpayments and incentives available to return every recoverable dollar to your budget. 

Severance tax experts in the energy industry.


Explaining the industry to an outsider is an uphill battle, and we think that time is better used elsewhere, like hitting the ground running when it comes to managing your compliance process. Our severance tax team has worked in-house for energy companies, so we can anticipate issues and provide proactive solutions that minimize your severance tax burden while maximizing profitability. 

The inside scoop on severance tax legislation.


Accounting knowledge only gets you so far when it comes to severance tax recovery. You also need a deep background in the inner workings of energy policy, and we have that in spades, including legislative and taxation experience among our team.

 

Case Study

Large Texas oil & gas operator recovers $12M in marketing costs with severance tax expertise

Read the Case Study

A proven process for success.


Identification and certification. After extracting and analyzing your data, we identify and apply for the proper certifications and exemptions—like low-producing wells, high-cost gas, and flaring—depending on your unique operating needs.  

Additional incentives. We identify additional marketing costs incurred and highlight available incentives for operators to utilize, both retrospectively through historical audit review and prospectively for an annual rate implementation. 

Tax reimbursement. We study your contracts line-by-line to decipher contractual language and what it means for operators when it comes to liability and tax filings for each of their purchasers. 

Advisory. We don’t stop with refunds. We also conduct a deep dive on the current state of your internal operations and share best practices for performance and process improvements. 

Software implementation. To keep you ahead of the curve, we assist in your data conversion needs and recommend software solutions tailored to your operations. 

Frequently Asked Questions

What is severance tax? Severance tax is a state tax imposed on the extraction of oil, natural gas, and other natural resources. Rates, exemptions, and incentives vary by state and change frequently, resulting in many cost recovery opportunities going unclaimed.
How do operators recover overpaid severance tax? Oil and gas severance tax overpayments are typically recovered by filing amended returns or refund claims with the state taxing authority, supported by documentation showing the tax was overpaid. Because exemption and deduction rules vary by state and change over time, overpayments often go unnoticed until a dedicated review identifies them within the statute of limitations.
What is the high-cost gas exemption? The high-cost gas exemption is a reduction in severance tax available for natural gas wells that are particularly expensive to drill and operate. To qualify, operators must obtain state certification, and eligibility is determined by the costs of drilling and completing the well. As a result, some qualifying wells may remain uncertified.
How far back can you claim a severance tax refund? Most states allow refund claims within their statute of limitations, generally three to four years from the due date of the return, depending on the state. Overpayments older than that are typically no longer recoverable.
Does my company need a severance tax review? If you operate oil or gas wells and haven't systematically reviewed certifications, exemptions, and marketing cost deductions within the statute of limitations, a severance tax consulting engagement will show what's recoverable, typically with minimal time from your team.