Cumberland Operating Co. v. Ogez

DOOLIN, Chief Justice.

We address two questions today: first, whether salt water disposal is necessary for the production of oil and gas, thereby exempting a salt water disposal well from payment of ad valorem taxes upon payment of gross production taxes; second, if the answer to the first question is affirmative, whether the tax on the salt water disposal well should be apportioned on a pro rata basis so that the proportion of the well used for disposal of salt water from the lease on which the disposal well stands is relieved of ad valorem taxation but the proportion of the well used for…