Current through Register Vol. 35, No. 6, March 26, 2024
A. The division shall accept applications for
qualification of production restoration projects for the production restoration
incentive tax exemption pursuant to the Natural Gas and Crude Oil Production
Incentive Act, NMSA 1978, Sections
7-29B-1 through
7-29B-6.
B. 19.15.6.9 NMAC applies to gas or oil wells
division records show had 30 days or less production in a period of 24
consecutive months beginning on or after January 1, 1993 upon which the
operator commenced operations to restore production after June 16,
1995.
C. To be eligible for the
exemption, the operator shall apply for and receive division approval. No
production restoration project commenced prior to June 16, 1995
qualifies.
D. Applications.
(1) An operator shall file an application
with the division within 12 months of the production restoration.
(2) The operator shall file the application
on behalf of the project's interest owners.
(3) The operator shall file the application
on form C-139 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 project and issue a certification to the operator designating the gas
or oil well as a production restoration project when the operator proves that:
(i) after June 16, 1995, the operator has
commenced a process to return the well to production; and
(ii) division records show the well had 30
days or less of production in any period of 24 consecutive months beginning on
or after January 1, 1993.
(b) The exemption shall apply beginning the
first day of the month following the date the operator returned the well to
production 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. This notice shall identify the gas or oil well as a production
restoration project and certify the date production was restored.
(3) Hearing. 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 appropriate division district
office has not acted upon within 30 days from the date it is filed shall be
deemed denied.
