North Dakota Administrative Code
Title 43 - Industrial Commission
Article 43-02 - Mineral Exploration and Development
Chapter 43-02-03 - Oil and Gas Conservation
Section 43-02-03-60.3 - Application to certify well for temporary gas tax exemption

Universal Citation: ND Admin Code ยง 43-02-03-60.3

Current through Supplement No. 392, April, 2024

Any operator desiring to certify a well for purposes of eligibility for the gas tax incentive provided in North Dakota Century Code chapter 57-51 shall submit to the director an application for certification as an oil or gas well employing a system to avoid flaring. The operator has the burden of establishing entitlement to certification and shall submit all data necessary to enable the commission to determine whether a well is entitled to the tax exemption.

An application for a temporary gas tax exemption under North Dakota Century Code chapter 57-51 must, at the minimum, include the following information:

1. Name and address of the applicant and name and address of the person operating the well, if different.

2. Name and number of the well and the legal description of the location of the well for which a certification is requested.

3. If gas is collected and used at a well or facility site to power an electrical generator, the following information must be included:

a. Name and manufacturer of the electrical generator,

b. Date electrical generation commenced.

c. Volume of gas consumed by the electrical generator during a minimum seven-day test period and the volume of gas produced by the well during such test period.

4. If gas is collected at a well or facility site by a system that compresses gas and natural gas liquids for beneficial consumption, the following information must be included:

a. Name and manufacturer of the compression equipment.

b. Date compression commenced.

c. Destination of the compressed products (i.e., fuel use, processing facility, fertilizer plant, etc.).

d. Volume of gas compressed during a minimum seven-day test period and the amount of gas produced by the well during such test period.

e. Analysis of a representative gas sample produced from the well.

5. If gas is collected at a well or facility site for a value-added process that will reduce the volume or intensity of a flare by more than sixty percent, the following information must be included:

a. Name and manufacturer of the process equipment,

b. Date processing commenced.

c. Volume of gas processed during a minimum seven-day test period and the amount of gas produced by the well during such test period.

d. Analysis of a representative gas sample produced from the well, detailing the Btu value of the unprocessed gas and volume or mass as well as Btu value of each component removed from the flared gas stream for value added use.

If the application does not contain sufficient information to make a determination, the director may require the applicant to submit additional information.

General Authority: NDCC 38-08-04

Law Implemented: NDCC 38-08-04, 57-51-02.6

Disclaimer: These regulations may not be the most recent version. North Dakota may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.