Current through Register Vol. 35, No. 18, September 24, 2024
A. The division shall accept applications for
qualification of well workover projects for the well workover incentive tax
rate pursuant to the Natural Gas and Crude Oil Production Incentive Act, NMSA
1978, Sections
7-29B-1 through
7-29B-6.
B. 19.15.6.10 NMAC applies to a gas or oil
well upon which the operator has commenced a workover after June 16, 1995 that
is intended to increase the well's production.
C. To be eligible for the incentive tax rate,
the operator shall apply for and receive division approval. No well workover
project the operator commences prior to June 16, 1995 qualifies.
D. Application.
(1) The operator shall file the application
with the division within 12 months of the workover's completion.
(2) The operator shall file on behalf of the
project's interest owners.
(3) The
operator shall retain the data used in the application in its files during the
period of time the well qualifies for and receives the well workover incentive
tax rate.
(4) The operator shall
file the application on form C-140 using the division's web-based online
application.
E.
Approval, certification, notification and hearing.
(1) Project approval and certification.
(a) The division shall approve a workover and
issue a certification of approval to the operator designating the gas or oil
well as a well workover project when the operator proves that:
(i) the operator has undertaken approved
workover procedures on the well that are intended to increase production;
and
(ii) the production curve or
data tabulation from production data reflects a positive production increase
from the workover.
(b)
The incentive tax rate shall apply beginning the first day of the month
following the date the operator completed the workover as certified by the
division.
(2)
Notification to the secretary of taxation and revenue. The division shall
notify the secretary of taxation and revenue of the approval by identifying the
gas or oil well as a well workover project and certifying the date the operator
completed the project.
(3) Hearings
and requests for additional information.
(a)
The division shall consider applications without a hearing. If the appropriate
division district office denies an application, the division upon the
applicant's request shall set the application for hearing. An application the
division district office does not act on within 30 days from the date it is
filed is deemed denied.
(b) The
division may request additional information from the operator to support an
application. When the division requests additional information, the 30-day
approval period shall begin to run on the date the operator provides the
requested data.
F. Certifications prior to July 1, 1999. Well
workover projects the division certified prior to July 1, 1999 shall be deemed
to be approved and certified in accordance with the provisions of the Natural
Gas and Crude Oil Production Incentive Act and gas or oil produced from those
projects shall be eligible for the well workover incentive tax rate effective
July 1, 1999.
