(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.
  (1) First purchaser--Any person purchasing gas and/or condensate from a producer.
  (2) Processor--Any person processing gas, under contract or other arrangement with a producer, for the purpose of extracting liquid hydrocarbons or other products from the gas.
(b) Persons required to file the purchaser/processor report.
  (1) All first purchasers taking delivery of gas on the lease from which the gas was produced must file the purchaser/processor report. All first purchasers of condensate must file the purchaser/processor report.
  (2) All processors processing gas and taking delivery on the lease from which the gas was produced must file the purchaser/processor report.
(c) Information required to be reported.
  (1) The first purchaser must report the following:
    (A) the name of the operator of the lease, unless the purchase is being made from an interest owner taking in-kind, in which case the name of the interest owner shall be reported;
    (B) the name of the lease;
    (C) the volume purchased;
    (D) the entire value paid to the producer excluding severance tax reimbursement; and
    (E) the value upon which the purchaser remits tax.
  (2) The processor must report the following:
    (A) the name of the operator of the lease, unless gas is being processed for an interest owner taking in-kind, in which case the name of the interest owner shall be reported;
    (B) the name of the lease;
    (C) the total volume processed;
    (D) the entire value, excluding severance tax reimbursement, paid to the producer by the processor for the gas stream processed;
    (E) the value upon which the processor remits tax; and
    (F) if products are being taken in-kind by the producer.

Source Note: The provisions of this §3.26 adopted to be effective June 2, 2013, 38 TexReg 3355