Injected oil

When produced from and injected into the same well, oil must be reported as production upon recovery after injection. When produced from one well and transported to a second well, oil injected into the second well must be reported as production from the first well and tax is due at the time the oil is transported to the second well. In determining production from the second well, injected oil must be excluded from production. The amount excluded must be applied against the first oil recovered after injection. Injected oil includes, but is not limited to, what is commonly known as power oil, frac oil, and load oil.