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Stripper Well/Marginal Property Information
Crude oil produced from oil wells classified as stripper or marginal may use the lower tax rate of 4% of gross cash market value.
|Stripper Well Crude Oil||Oil produced and sold from a property whose maximum daily average production of crude oil per well during any consecutive 12-month period does not exceed 10 barrels.|
|Marginal Property Crude Oil||A “property” whose daily average production (excluding condensate recovered in non-associated production) per well during any preceding consecutive 12-month period that did not exceed the number of barrels shown in the following table for the average completion depth.|
- Name, FEIN, and address of producer of wells
- Name, FEIN, and address of company remitting tax/submitting tax return (if different from producer of wells)
- Name of the well
- Permit number and PRU number
- Well Depth
- Production figures for 12 consecutive months
- Verification that well was producing at full capacity
- Copies of original returns
The Department will review information and respond in writing.
|Mail Correspondence to:||Michigan Department of Treasury
Bureau of Tax Policy, Severance Tax
P.O. Box 30474
Lansing, MI 48909-7974