Section 81-09-02-19 - Reporting requirements for producers and purchasers1. The purchaser of oil at the well must file a monthly oil purchaser's report, as follows: a. If the purchase of oil at the well is an arm's length transaction, the first purchaser must file the oil purchaser's report. b. If the first purchase of oil at the well is a non-arm's length transaction and the oil is resold at the well to an arm's length purchaser, the second purchaser must file the oil purchaser's report. c. If the first purchase of oil at the well is a non-arm's length transaction and the oil is not resold at the well but is sold downstream, the purchaser at the well must file the oil purchaser's report. d. The term arm's length transaction as used in this section is defined in section 81-09-02-09. 2. The purchaser is primarily responsible for remitting tax due on all oil purchased from an operator or working interest owner when delivery is made at the well. The commissioner may accept payment of the tax from the operator or working interest owner but failure of the operator or working interest owner to pay the tax will not relieve the purchaser of liability for the tax. 3. Unless the operator and working interest owner have received a waiver of the filing requirement, they shall report as follows: a. The operator must report the sales volume and the gross value at the well of the oil the operator actually sold. b. The working interest owners who take oil in kind must report the sales volume and the gross value at the well of the oil taken in kind. 4. The operator must report and remit the tax on all oil not sold at the well, including any oil used, lost, stolen, or otherwise unaccounted for after it has been produced. 5. The person reporting and remitting tax on a new property must submit documentation to support a claim for exempt royalty interests. The documentation must be mailed to the commissioner within ninety days after the first report is filed on the property. N.D. Admin Code 81-09-02-19
Effective April 1, 1995; amended effective June 1, 2002.General Authority: NDCC 57-51-21
Law Implemented: NDCC 57-51-05, 57-51-06, 57-51-07