1. (a)

   1. (1) Each producer of natural gas within twenty-five (25) days after the end of each month, whether or not he or she shall have actually severed natural gas during the preceding month, shall file with the Secretary of the Department of Finance and Administration a report setting forth, in a form to be prescribed by the secretary:

      1. (A) The gross quantity of natural gas, if any, severed by such producer during the next preceding month;
      2. (B) The point of severance thereof;
      3. (C) The market value of the natural gas severed;
      4. (D) The amount of severance tax due; and
      5. (E) Such other information as the secretary may reasonably require for the proper enforcement of the provisions of this part.

   2. (2)

      1. (A) In those circumstances where a producer lacks sufficient information to file his or her monthly report, a producer may file an estimated monthly report.
      2. (B) The estimated monthly report must be filed with the secretary no later than twenty-five (25) days after the end of each month and shall set forth:

2. (i) The estimated gross quantity of natural gas severed in the preceding month;

   1. (ii) The point of severance thereof;

      1. (iii) The estimated market value of the natural gas severed;

         1. (iv) The amount of estimated severance tax due; and
         2. (v) Such other information as the secretary may reasonably require for the proper enforcement of the provisions of this part.
      2. (C) The payment of the full amount of the estimated severance tax appearing to be due from the report shall accompany the estimated report.

   2. (3)

      1. (A) However, a producer that lacks sufficient information to file his or her actual January 2009 report (due on or before February 25, 2009) will not file an estimated report.
      2. (B) The producer shall file his or her January 2009 report on or before March 25, 2009.
      3. (C) The producer will file his or her February 2009 estimated report no later than March 25, 2009.

      4. (D) In successive months following March 2009, the producer shall file on or before the twenty-fifth day of each month, his or her:

         1. (i) Estimated report for the next preceding month; and
         2. (ii) Amended report for the second preceding month.

   3. (4)

      1. (A) The producer's amended report shall set forth:

         1. (i) The actual gross quantity of natural gas severed;
         2. (ii) The point of severance thereof;
         3. (iii) The actual market value of the natural gas severed;
         4. (iv) The amount of actual severance tax due; and
         5. (v) Such other information as the secretary may reasonably require for the proper enforcement of the provisions of this part.
      2. (B) The payment of the full amount of the severance tax appearing to be due from the amended report shall accompany the report, with proper deduction or credit for estimated amounts paid in the preceding month.

3. (b) The report shall be verified by the producer himself or herself in the instance of an individual producer and by a member or officer or the manager of the producer in all other instances.

   1. (c) The payment of the full amount of the severance tax appearing to be due from the report shall accompany the report.

      1. (d) Within ten (10) days after any producer shall have ceased operation with the intention of no longer engaging in the business of severing natural gas, the permit theretofore issued by the Director of the Oil and Gas Commission shall be returned by him or her to the director for cancellation, but any such producer whose permit shall have been so canceled may engage in such business upon the filing of a new application with and the issuance of a new permit by the director.
4. (e) Any producer who shall fail to comply with the provisions of this section shall be guilty of a misdemeanor and upon conviction shall be fined not less than one hundred dollars ($100) nor more than five hundred dollars ($500) for each such offense, and the willful false swearing as to the contents of any such report shall constitute perjury and shall be punishable as such.

5. (f) Except as otherwise provided in this part, the monthly report shall be filed and the payment of the severance tax shall be made by the producer actually severing the natural gas whether as:

   1. (1) Owner;
   2. (2) Lessee;
   3. (3) Concessionaire; or
   4. (4) Contractor.
6. (g) The reporting taxpayer shall collect or withhold out of the proceeds of the sale of the natural gas severed the proportionate parts of the total severance tax due by the respective owners of the natural gas at the time of severance.

7. (h) Every producer actually operating any natural gas well is authorized, empowered, and required to deduct the amount of the severance tax in respect thereto from any such royalty or other interest before making the direct payment.

   1. (i) Notwithstanding the sale or delivery, all severed natural gas sold or delivered to any pipeline company for transportation by it through pipes connected with the natural gas well of the owner is subject to the severance tax on the severed natural gas.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "Source: Ark. Code Ann. §§ 26-58-114 and 26-58-115."