The parties should be aware that the purchase and sale of certain assets in Oklahoma could subject the Buyer to liability for the payment of sales tax, which would be derived from the purchase price for the affected assets. In E&P transactions, the transfer of mineral interests alone are unlikely to be subject to the payment of Oklahoma sales tax; however, as is often the case, when personal property is also associated with those interests (e.g., rigs, equipment, tools, etc.) and included in the transfer, it could trigger an obligation to remit sales tax. The parties should independently seek advice from their counsel and accountants in order to best address these sales tax concerns. In the event that sales tax will be assessed on the transfer, the PSA should contain a provision setting forth a clear allocation of tax payment obligations between the Buyer and Seller. Absent such a provision, Oklahoma law provides that the Seller must add the sales tax to the purchase price, collect the sales tax from the Buyer and report and remit the collected sales tax to the Oklahoma Tax Commission. Under Oklahoma law, the Seller acts as a collecting agent for the state (and city), so the Seller's failure to collect, report and remit the sales tax on the sale could subject it to liability for such tax.