N.D. Admin. Code 43-02-09-02

Current through Supplement No. 395, January, 2025

Section 43-02-09-02 - Exemption from taxes

Production from a well with an average daily production of no more than fifty barrels of oil during the latest six calendar months of continuous production, upon which a workover project has been performed, is exempt from taxes imposed pursuant to North Dakota Century Code chapter 57-51.1 for twelve months beginning with the first day of the third calendar month after the completion of a workover project if:

1. The commission has received a notice of intention to begin a workover project in accordance with section 43-02-09-03.

2. A workover project is performed on the well.

3. The cost of the workover project exceeds sixty-five thousand dollars, or if the average daily production is increased at least fifty percent during the first two months after completion of the workover project, based upon a comparison to the average daily production for the latest six calendar months of continuous production prior to the filing of the notice of intention to begin a workover project.

For the exemption from the oil extraction tax for workover projects pursuant to North Dakota Century Code section 57-51.1-03, the reentry of a plugged and abandoned well is a workover project provided the cost of the operation exceeds sixty-five thousand dollars.

N.D. Admin Code 43-02-09-02

Effective May 1, 1990; amended effective May 1, 1994; July 1, 1996; May 1, 2004.

General Authority: NDCC 57-51.1-03

Law Implemented: NDCC 57-51.1-03