§ 26-58-209 - Cost of maintaining salt water disposal system. - Arkansas Statutes

26-58-209. Cost of maintaining salt water disposal system.

The cost of an oil producer in maintaining an approved underground salt water disposal system for the purposes of this subchapter shall include the following:

(1) An allowance, to be spread equally over each tax reporting period, for depreciation of the actual cash investment of the oil producer in the constructing, equipping, and improving of an approved underground salt water disposal system which depreciation period shall not be less than five (5) years nor more than ten (10) years as may be approved by the Director of the Department of Finance and Administration;

(2) The actual cash outlay of the oil producer in purchasing stock in a business or corporation organized exclusively for the purpose of constructing and operating an approved underground salt water disposal system; and

(3) (A) The actual expenses of the oil producer in operating and maintaining an approved underground salt water disposal system.

(B) These expenses shall include the cost of labor, supplies, materials, utilities, and other necessary operating expenses.

(C) In the case of an oil producer who purchases the services of an approved underground salt water disposal business or corporation for disposing of salt water produced in the production of oil by such oil producer, the actual cost of such service shall be deemed to be the cost of such oil producer within the meaning of this section.