Stripper Well Exemption
Colorado law exempts from severance tax:
The withholding agent is not required to provide an annual withholding statement Oil and Gas Withholding Statement (DR 0021W) to the interest owners if all gross payments or ad valorem taxes to be reported are from stripper well production. If at the end of the year, however, it is determined that a presumed stripper well does not qualify as such, the agent must provide interest owners with an annual withholding statement Oil and Gas Withholding Statement (DR 0021W) even if no severance tax was withheld. All disbursers must maintain records of barrels of oil and cubic feet of gas produced and of disbursements based on production from any qualifying stripper well, and provide that information to the interest owners.