Oregon Statutes 324.240 – Payment of tax when oil or gas in litigation
When oil or gas subject to gross production tax under this chapter is in litigation or dispute involving ownership of the oil or gas, and the oil or gas is sold, the usual gross production tax, as provided by law, shall be paid from the proceeds or funds in the hands of the purchaser of the oil or gas and in lieu of payment for the production, to the extent of the tax. The receipt of the Department of Revenue therefor shall be accepted in lieu of money in settlement of the purchase price of the production. If oil or gas is assigned as security for debt or otherwise, the tax shall be likewise paid by the assignee, and the tax shall constitute a lien upon the interest assigned, which shall be paramount to the indebtedness for which the assignment is made, and if the tax becomes delinquent, the usual penalty shall apply. [1981 c.889 § 16]
Terms Used In Oregon Statutes 324.240
- Department: means the Department of Revenue. See Oregon Statutes 324.050
- Gas: means natural gas and casinghead gas. See Oregon Statutes 324.050
- Gross production: means the total volume of oil or gas extracted from a well, including oil or gas extracted but not sold. See Oregon Statutes 324.050
- Lien: A claim against real or personal property in satisfaction of a debt.
- Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
- Oil: means petroleum, crude oil, mineral oil and casinghead gas. See Oregon Statutes 324.050
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
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