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Are the oilfield site restoration fees levied under R.S. 30:87 deductible in computing State royalty?

April 26, 2017computing deductible fees levied oilfield r.s restoration site State

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Are the oilfield site restoration fees levied under R.S. 30:87 deductible in computing State royalty?

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No. LA R.S. 30:87(E) provides that “The fees provided for in Subsections A and B of this Section shall be borne by the responsible parties and not by the royalty and overriding royalty owner.” Other types of fees that may be levied by the State are also not deductible in computing State royalty.