1. (a) Unless relieved in advance by the Secretary of the Department of Finance and Administration in writing from doing so, each first purchaser of natural gas shall file with the secretary, upon forms prescribed by him or her and within twenty (20) days after the end of each month, a verified report showing:

   1. (1) The names and addresses of all producers from whom such purchaser has acquired natural gas during the respective month;
   2. (2) The total quantity of natural gas so acquired and the purchase price thereof; and
   3. (3) Such further information as the secretary reasonably may require for the proper enforcement of the provisions of this part.
2. (b) It is the duty of each first purchaser of natural gas to ascertain, in advance of permitting the natural gas so purchased to be processed or otherwise changed from the natural state thereof at the time of severance or to be transported for the purpose of such processing or other change, that the severance tax upon the natural gas has been paid.

3. (c)

   1. (1) The first purchaser shall be primarily liable for any unpaid severance tax in the event of failure to make such advance ascertainment.
   2. (2) However, the first purchaser, as a condition to permitting the processing or other change of such natural gas as to which the severance tax shall not have been paid by the producer, may himself or herself pay such tax either in advance or, with the advance written approval of the secretary for cause shown to him or her, within twenty (20) days after commencing the processing or other change of the natural gas or the transportation thereof for such purpose.

4. (d)

   1. (1) The removal by the first purchaser of natural gas to any point of concentration or assembly, either within or without the state, without the severance tax having been previously paid by the producer or such first purchaser, shall, unless the secretary shall have given advance written approval therefor as aforesaid, be deemed a fraudulent concealment of the whereabouts of such natural gas with the intent to avoid the payment of such tax.

   2. (2) Each such removal by the first purchaser and any failure by the first purchaser to file the monthly reports as provided in this part shall:

      1. (A) Constitute a separate offense; and
      2. (B) Subject the first purchaser to a fine of not less than fifty dollars ($50.00) nor more than five hundred dollars ($500).
   3. (3) The willful false swearing as to the contents of any monthly report shall constitute perjury and shall be punished as such.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "Source: Ark. Code Ann. § 26-58-116."