Severance Tax Consulting

Shiv Om Consultants specializes in severance tax and royalty accounting for oil and gas producing companies. Severance tax services include post production cost deductions (PPC) and tax exemptions. Royalty services include analysis of lease agreements and calculations of proper allowed cost deductions.

Many Oil and Gas Producers are overpaying their severance taxes every month by under calculating post production costs. Overpayment of taxes and royalties unnecessarily increases lifting costs and reduces net operating income. Severance taxes and royalties are often overpaid because calculating the appropriate deductions is complex and a very different activity from typical field operations.

Severance tax and royalty compliance requires many resources beyond financial accounting and involves a great deal of data processing and cost allocation that is not within the functionality of oil and gas financial accounting software. Typically, resources needed such as process engineers experienced in tax and royalty compliance, are not available in accounting departments. This makes tax and royalty minimization a challenging activity for many producers.

We overcome the challenges of severance tax and royalty minimization with our People, Process and Technology. Shiv Om’s expertise lies in its team’s ability to analyze detailed production and operational data and having a thorough understanding of the severance tax regulations and royalty practices in various jurisdictions.

Our Approach

Severance tax consulting - Shiv Om's corporate pillars: people, technology, strategy, and process.

Image MapPeopleProcessTechnologyStrategy

The Process

Our process starts with an analysis of field operations to identify the processes and equipment that qualify for cost deductions under applicable statutes, policies or lease agreements. All processes are documented along with the set of facts that supports their deductibility classification. Accounting data is then gathered and loaded into a data-management system. All costs must be classified and allocated to product streams and individual processes. The computer model is programmed and configured according to the compliance strategy to calculate the appropriate deductions for each lease. This data processing supports our refund and compliance services. The result of this process is a full set of auditable documentation and calculations to support the tax and royalty calculations. This is an ongoing process. Documentation and accounting calculations are revised periodically with field re-visits and accounting reviews to identify changes needed to the strategy and the model.

Two oil derricks drilling in the sunset.

The Team

Minimizing severance tax and royalty burdens is a multi-disciplinary effort. Our team includes experts in oil and gas accounting, regulations, law, engineering, operations and data management. Our core team members have between 15 and 35 years of experience each in tax and royalty compliance. Creating and executing strategies for tax and royalty minimization requires all these disciplines, lots of experience and out-of-the-box thinking.


The Technology

We leverage technology to support the quality and repeatability of our accounting work. Our processes are embodied in the software and data-management systems we have developed over many years to enable our services. These systems support the accuracy, flexibility and auditability of our accounting services.


Our Services

We have added over a billion dollars to our clients’ Net Operating Revenue by reducing their tax and royalty burdens.

We provide services for multiple aspects of tax and royalty compliance in multiple jurisdictions.

We achieve great results by thinking outside of the box.

Our software and data-management systems support repeatable processes and quality of results in the form of consistently low error factors. In short, when our calculations are audited or challenged, our results hold up. Our thoroughness in documenting the field operations and precision in data analysis result in deduction calculations that yield maximum benefit to the client.

We provide access to many of our data analysis and reporting software modules to our clients as part of our TexRev cloud service. TexRev’s functionality includes compliance tools, EDI data quality tools and revenue data.

Who Are We?

Shiv Om Consultants is one of the premier severance tax consulting firms is the US and the number one firm in oil and gas severance tax accounting services. Our team has the experience you need to deliver consistent high-quality results. We have been serving the oil and gas industry for over two decades and enjoy a stellar reputation for taking care of our client’s needs. Let us put our talents to work for you.

We are your Dependable Partner
We provide Industry leading experience – working for your team.
We are aligned in achieving success together.
We get the best results by not only doing the job, but doing it correctly.