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 81-09-02-14.1 - Taxation of oil pipeline volume gains

1. Each operator of an oil pipeline in North Dakota must file a report with the tax commissioner showing its volume gains and volume losses for the calendar year. The report may be filed in the form of the pipeline's "over and short" report compiled during the ordinary course of its business. The annual report must be filed by the twenty-fifth day of February following the end of the calendar year.

2. The volume gains and losses must be calculated on a monthly basis by subtracting the total amount of oil received by the pipeline as measured at the well or at the trunkline from the total amount of oil delivered by the pipeline as measured at a subsequent point. If this calculation results in a positive number, there is a volume gain. If this calculation results in a negative number, there is a volume loss.

3. For purposes of calculating a volume gain or volume loss under this section, a volume gain cannot be decreased and a volume loss cannot be increased by oil lost due to spillage, leakage, fire, theft, or any other event resulting in a physical loss of oil.