A severance tax review is a review of an oil and gas operator’s wells that are in a state that requires a ‘severance tax’ on minerals taken from the ground. There are exemptions unique to each state that allow that tax burden to be reduced. In many states where minerals are mined, a severance tax is applied to the minerals being separated from the ground and permanently removed or “severed” from the state.  Operators are required to report to the state the actual volume of mineral being removed from the ground, which is then taxed at various rates. Texas especially has one of the largest severance taxes, more on those rates are here. In the severance tax arena, there are deductions that apply and are often overlooked or missed. There are also errors in tax rate application that can be vastly overlooked.  In many cases, mineral operators pay severance taxes far in excess of what is actually required by the state.  KE Andrews’ severance tax group is second to none in identifying missed opportunities, and recovering lost severance tax dollars sending them back to where they belong, your bottom line.

Severance Tax State By State

We understand how difficult it is just getting current monthly reporting filed.  A severance tax review with KE Andrews is the answer to capturing all missed savings opportunities. We have the time and expertise to minimize your burden through a severance tax review.  Whether it is in relation to an agency audit, or deep analysis to identify any possible refund opportunities; let our severance tax group handle your look backs providing auditable results. See how we can help here.

Severance tax review


Large Gas Producer- $3,200,000 Recovered
Large Oil & Gas Supermajor- $1,700,000 Recovered






Our severance tax team is unique and diverse.  Having professionals on staff who’ve recently served in various capacities including Comptroller Policy, Revenue Regulatory, to VP of Tax, we maintain an exceptional perspective and can truly analyze your processes from every angle to offer the highest level of expertise through a severance tax review.  We also possess state agency relationships and knowledge which allows us to assist you in the best way possible.  The majority of our work is performed off-site in our offices and requires minimal time from our clients and their support staff. KE Andrews values building lasting relationships with long-term clients by exceeding expectations and over-delivering.  Our mission with a severance tax review is to leave you better than we found you, to be the trusted advisor that you call anytime you need state tax help or advice. Many of our current oil and gas property tax clients are also severance tax clients.

  • We want to look at your process from the field all the way to the financial statement, to fully understand and help improve the flow to tax returns
  • We will not come in and just pick the easy to identify low-hanging fruit
  • We will identify both your liabilities and refund opportunities to give you the full compliance picture
  • Currently representing over 30% of the leases in TX & LA and over 41% in the Rocky Mountains for property tax, we can minimize the burden of data collection as we share data with our ad valorem group.
  • We maintain outstanding relationships with all state agencies.
  • We'll train you on our findings, adding value to your in house team.
ad valorem tax oil and gas


  • Post-production "Marketing Cost" Reviews
  • High Cost Gas Exemptions & Low Producing Incentives
  • Tax Reimbursements & Tax Rate Reviews
  • Refund Recovery
  • Process Reviews & Training
  • Managed Audits & Audit Defense
  • Setting Prospective Deduction Rates & Annual True-Ups