North Dakota Administrative Code
Title 81 - Tax Commissioner
Article 81-09 - Oil and Gas Gross Production and Oil Extraction Taxes
Chapter 81-09-02 - Oil and Gas Gross Production Tax
Section 81-09-02-09.1 - Reduction from gas volumes and reporting
Universal Citation: ND Admin Code ยง 81-09-02-09.1
Current through Supplement No. 394, October, 2024
1. To determine the volume of gas upon which gross production tax must be paid, the following may be deducted from the total volume of gas produced and must be reported to the commissioner:
a. Wet gas and gas products
exempt from taxation pursuant to subsection 3 of North Dakota Century Code
section 57-51-05. The volume of gas to be
deducted for the wet gas and gas products must be computed using the formulas
prescribed in forms provided by the commissioner.
b. Condensate reported as oil. The volume of
gas to be deducted for each barrel of condensate must be computed using the
formula prescribed in forms provided by the commissioner.
c. Gas flared from an oil well by a producer
that is not subject to taxation pursuant to North Dakota Century Code section
38-08-06.4.
d. In the event a substance is being injected
into a reservoir as a part of a tertiary recovery project, and the amount of
nonhydrocarbon gas produced from a well is disproportionally increased as a
result of the project, the total volume of gas produced from the well may be
adjusted subject to the approval of the commissioner in a manner approved by
the commissioner.
2. A producer is not required to report exempt lease use gas and gas flared from an oil well that is not connected to a gas gathering line if the producer submits the following to the commissioner:
a. A
chemical analysis of the flared gas, if available;
b. After the first year's production, an
industrial commission order exempting the producer from the provisions of North
Dakota Century Code section
38-08-06.4; and
c. A written statement stating the specific
use of exempt gas volumes used on the lease.
General Authority: NDCC 57-51-21
Law Implemented: NDCC 57-51-01, 57-51-05
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.
