1. (a) Tax reimbursement collected by gas producers under rates prescribed by the U. S. Department of Energy as a result of the Natural Gas Policy Act of 1978 shall not be considered a part of the producer"s gross cash receipts subject to the Texas gas occupation tax and should not be included on either the producer's or the purchaser's tax reports.
2. (b) The maximum lawful price of "certain Permian Basin" gas as defined by the Federal Energy Regulatory Commission Regulation, Chapter I, Subchapter H, (271) (K) (December 1, 1978), shall be deemed to include tax reimbursements of 2.6 cents per mcf for large producers and 3.05 cents per mcf for small producers whenever the taxable value equals or exceeds 34.7 cents for large producers and 4.07 cents for small producers. These tax reimbursements and any reimbursement in excess of these amounts are not a part of the producer's gross cash receipts subject to the Texas gas occupation tax and should not be included on either the producer's or purchaser's tax reports.
3. (c) Whenever the taxable value is less than 34.7 cents for large producers and 40.7 cents for small producers, taxable value shall be determined in the following manner: Taxable value equals T minus C divided by 1.075, where T equals total rate being received and C equals marketing costs being deducted for tax purposes.

Source Note:The provisions of this §3.18 adopted to be effective January 1, 1976; amended to be effective February 21, 1978, 3 TexReg 476; amended to be effective May 2, 1979, 4 TexReg 1417.