Receipts from the sale of oil, natural gas or liquid hydrocarbon, individually or any combination thereof, including butane and propane, when such products are used as fuel in the operation of a "production unit" as defined in Section 7-31-2 NMSA 1978 of the Oil and Gas Emergency School Tax Act are subject to the gross receipts tax. Only the value of the oil, natural gas or liquid hydrocarbon, individually or any combination thereof, produced on a "production unit" and used as fuel on the same "production unit" is exempt from provisions of the Gross Receipts and Compensating Tax Act.
N.M. Admin. Code § 3.2.121.8