KRS 143A.025 — Natural gas severance incentives

(1) As used in this section:
(a) "Alternative fuel facility" has the same meaning as in KRS 154.27-010;
(b) "Approved company" has the same meaning as in KRS 154.27-010;
(c) "Authority" has the same meaning as in KRS 154.27-010;
(d) "Base amount" has the same meaning as in KRS 154.27-010;
(e) "Capital investment" has the same meaning as in KRS 154.27-010;
(f) "Eligible project" has the same meaning as in KRS 154.27-010; and
(g) "Tax incentive agreement" has the same meaning as in KRS 154.27-010.
(2) Notwithstanding any other provision of K RS 134.580 or this chapter, an approved
company that purchases or severs natural gas or natural gas liquids that is subject to the
tax imposed under KRS 143A.020 and that is specifically used by the approved
company as feedstock for an alternative fuel fac ility described in KRS 154.27 -
020(4)(d) may be eligible for an incentive under KRS 154.27-060.
(3) A company approved for incentives under KRS 154.27 -060 shall file a request for the
incentive with the department within sixty (60) days of the completion of the
construction, retrofit, or upgrade of the facility. In subsequent years, the approved
company shall file a request for the incentive within sixty (60) days following the end
of each calendar year. The request for incentives shall be in the form prescr ibed by the
department through the promulgation of administrative regulations in accordance with
KRS Chapter 13A. The request for incentives shall include but not be limited to the
following information:
(a) Verification of the base amount;
(b) Verification of the thousand (1,000) cubic foot units (Mcf) of natural gas or
gallons of natural gas liquids purchased and used or severed and used by the
approved company as feedstock for an alternative fuel facility during the calendar
year for which the request for incentives is being made;
(c) Verification that the minimum capital investment as set forth in the tax incentive
agreement has been made;
(d) Verification of the output of natural -gas-derived or natural gas liquids -derived
alternative transportation fuel; and
(e) Any other information that the department may require.
(4) (a) The department and the authority shall review the request for incentives jointly
and shall verify that the request for incentives meets all requirements established
by statute and administrative regulation.
(b) The department shall verify the tax paid pursuant to KRS 143A.020 on the
natural gas and natural gas liquids purchased or severed by the approved
company and used as feedstock for an alternative fuel facility during the calendar
year for which the application was submitted and shall determine the amount of
the tax paid that qualifies for distribution to the approved company pursuant to
this section.
(c) The incentive amount shall be distributed to the approved company in quarterly
installments beginning on July 1 of the year following the calendar year for
which the request for incentives required under this section was submitted.
(6) The approved company seeking incentives shall execute information -sharing
agreements prescribed by the department with vendors from which it purchased natural
gas and natural gas liquids to verify the value of natural gas and natural gas liquids
purchased by the approved company and used as feedstock for an alternative fuel
facility and the amount of tax paid under KRS 143A.020 on such natural gas and
natural gas liquids.
(7) The department shall notify the authority of the incentive distributed to each approved
company upon request.