1994                             Laws of Maryland                       Ch. 711

Maryland), title "Allegany County," to follow immediately after
Section 572 thereof and to be under the new subtitle "Natural
Gas," levying a distribution and production tax on the business or
occupation of collecting, distributing and producing natural gas
or other gases taken from the earth in Allegany County, providing
for an exemption from county taxation, and providing generally
for the powers and duties of the county commissioners and of
certain other persons with respect to the levying, administration
and collection of this tax and relating generally to the collection,
distribution and production of natural gas or other gases taken
from the earth in Allegany County and to the taxation and regula-
tion thereof.

Section 1. Be it enacted by the General Assembly of Maryland,
That new Sections 572-1 to 572-10, inclusive, be and are hereby
added to the Code of Public Local Laws of Allegany County (1963
Edition and 1967 Supplement, being Article 1 of the Code of Public
Local Laws of Maryland), title "Allegany County," to follow imme-
diately after Section 572 thereof and to be under the new subtitle
"Natural Gas," and to read as follows:

NATURAL GAS
572-1. Distribution and production tax.

(a)    There is hereby levied a distribution and production tax on
the business or occupation of collecting, distributing and producing
natural gas or other gases taken from the earth in Allegany County
computed as follows:

A tax shall be paid on the gas produced and saved for commercial
purposes within Allegany County, accounting from January 1, 1969,
equivalent to seven per cent (7%) of the wholesale market value
thereof as and when produced; provided that the amount of such tax
shall never be less than 11/150 of one per cent per one thousand
(1,000) cubic feet.

In calculating the tax herein levied, there shall be excluded: (1)
gas injected into a natural oil or gas bearing reservoir in Allegany
County, unless sold for such purpose; (2) gas produced from oil
wells with oil and lawfully vented or flared; and (3) gas used for
lifting oil, unless sold for such purpose.

(b)    The market value of gas produced in Allegany County shall
be the value thereof at the mouth of the well; however, in case gas
is sold for cash only, the tax shall be computed on the producer's
gross cash receipts. In all cases where the whole or a part of the
consideration for the sale of gas is a portion of the products extracted
from the producer's gas or a portion of the residue gas, or both, the
tax shall be computed on the gross value of all things of value re-
ceived by the producer, including any bonus or premium; provided
that notwithstanding any other provision herein to the contrary,
where gas is processed for the liquid hydro-carbon content and the
residue gas is returned by cycling methods, as distinguished from
re-pressuring or pressure maintenance methods, to some gas produc-
ing formation, the taxable value of such gas shall be three-fifths
(3/5) of the gross value of all liquids extracted, separated and saved
from such gas, such value to be determined upon separation and