Sec. 12.6. (a) For purposes of this section, the term “secondary recovery method” includes but is not limited to the stimulation of oil production by means of the injection of water, steam, hydrocarbons, or chemicals, or by means of in situ combustion.

     (b) The total assessed value of all interests in the oil located on or beneath the surface of a particular tract of land equals the product of:

(1) the average daily production of the oil; multiplied by

(2) three hundred sixty-five (365); and multiplied by

(3) the posted price of oil on the assessment date.

However, if the oil is being extracted by use of a secondary recovery method, the total assessed value of all interests in the oil equals one-half (1/2) the assessed value computed under the formula prescribed in this subsection. The appropriate township assessor (if any), or the county assessor if there is no township assessor for the township, shall, in the manner prescribed by the department of local government finance, apportion the total assessed value of all interests in the oil among the owners of those interests.

     (c) The appropriate township assessor, or the county assessor if there is no township assessor for the township, shall, in the manner prescribed by the department of local government finance, determine and apportion the total assessed value of all interests in the gas located beneath the surface of a particular tract of land.

     (d) The department of local government finance shall prescribe a schedule for township and county assessors to use in assessing the oil or gas interests described in section 12.4(a) of this chapter and the appurtenances described in section 12.4(c) of this chapter. The owner or owner’s agent of the oil or gas interests or appurtenances described in section 12.4 of this chapter must file the schedule by May 15 each year with the appropriate township assessor (if any), or the county assessor if there is no township assessor for the township.

     (e) If a person fails to file the schedule required by subsection (d) on or before the due date, the county auditor shall add a penalty of twenty-five dollars ($25) to the person’s next property tax installment. The county auditor shall also add an additional penalty to the taxes payable by the person if the person fails to file the schedule within thirty (30) days after the due date. The amount of the additional penalty is ten percent (10%) of the taxes finally determined to be due with respect to the property which should have been reported on the schedule.

As added by P.L.198-2001, SEC.10. Amended by P.L.146-2008, SEC.67; P.L.83-2019, SEC.1.