New Mexico Administrative Code
Title 3 - TAXATION
Chapter 2 - GROSS RECEIPTS TAXES
Part 223 - DEDUCTION - GROSS RECEIPTS TAX - CHEMICALS AND REAGENTS
Section 3.2.223.9 - NATURAL GAS WELLS: SALT WATER DISPOSAL WELLS AND INJECTION WELLS
Universal Citation: 3 NM Admin Code 3.2.223.9
Current through Register Vol. 35, No. 18, September 24, 2024
A. For purposes of Section 7-9-65 NMSA 1978, natural gas wells are oil wells, since they produce condensate or oil as a by-product. Receipts from the sale of chemicals or reagents for use in acidizing such wells may be deducted from the seller's gross receipts.
B. For purposes of deductions under Section 7-9-65 NMSA 1978, salt water disposal wells and injection wells are not oil wells. Receipts from the sale of chemicals or reagents, in lots of less than eighteen tons, for use in acidizing such wells may not be deducted from the seller's gross receipts.
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