Crude Oil and Condensate
The Oilfield Site Restoration Fee for crude oil and condensate is based on the average monthly New York Mercantile Exchange price of crude oil per barrel for the prior twelve (12) months as of July 1.
For fiscal year July 1, 2026, through June 30, 2027, the crude oil price is $73.28 per barrel. Because the price is above $60 but below $90 per barrel, the Oilfield Site Restoration Fee is $0.04 per barrel of crude oil and condensate.
Natural Gas and Casing Head Gas
The Oilfield Site Restoration Fee for natural gas and casing head gas is based on the price of natural gas on July 1st of each year based on the Henry Hub Natural Gas Spot Price average monthly price for the preceding calendar year.
For fiscal year July 1, 2026, through June 30, 2027, the natural gas price is $3.53 per million BTU. Because the price is above $2.50 but below $4.50 per million BTU, the Oilfield Site Restoration Fee is $0.004 per MCF of natural gas and casing head gas.
Reduced Rate Production Categories
Beginning on July 1, 2026, the Oilfield Site Restoration Fee for stripper wells, incapable wells, and other reduced-rate production categories is no longer based on the reduced-rate severance tax. Instead, the fee is calculated as a percentage of the applicable full-rate Oilfield Site Restoration Fee.
| Production Category | Statutory Rate | Fiscal Year 2026-2027 Fee |
| Incapable oil wells | 50% of crude oil/condensate fee | $0.02 per barrel |
| Stripper oil wells | 25% of crude oil/condensate fee | $0.01 per barrel |
| Low pressure oil wells | 40% of natural gas/casing head gas fee | $0.0016 per MCF |
| Incapable gas wells | 17.5% of natural gas/casing head gas fee | $0.0007 per MCF |
Questions concerning the Oilfield Site Restoration Fee should be directed by email to [email protected].
