Section 81-09-02-09.1 - Reduction from gas volumes and reporting1. To determine the volume of gas upon which gross production tax must be paid, the following may be deducted from the total volume of gas produced and must be reported to the commissioner: a. Wet gas and gas products exempt from taxation pursuant to subsection 3 of North Dakota Century Code section 57-51-05. The volume of gas to be deducted for the wet gas and gas products must be computed using the formulas prescribed in forms provided by the commissioner. b. Condensate reported as oil. The volume of gas to be deducted for each barrel of condensate must be computed using the formula prescribed in forms provided by the commissioner. c. Gas flared from an oil well by a producer that is not subject to taxation pursuant to North Dakota Century Code section 38-08-06.4. d. In the event a substance is being injected into a reservoir as a part of a tertiary recovery project, and the amount of nonhydrocarbon gas produced from a well is disproportionally increased as a result of the project, the total volume of gas produced from the well may be adjusted subject to the approval of the commissioner in a manner approved by the commissioner. 2. A producer is not required to report exempt lease use gas and gas flared from an oil well that is not connected to a gas gathering line if the producer submits the following to the commissioner: a. A chemical analysis of the flared gas, if available; b. After the first year's production, an industrial commission order exempting the producer from the provisions of North Dakota Century Code section 38-08-06.4; and c. A written statement stating the specific use of exempt gas volumes used on the lease. N.D. Admin Code 81-09-02-09.1
Effective June 1, 1992; amended effective April 1, 1995.General Authority: NDCC 57-51-21
Law Implemented: NDCC 57-51-01, 57-51-05