Current through Reg. 49, No. 12; March 22, 2024
(a) Purpose. The
purpose of this section is to provide a procedure by which an operator can
obtain commission certification of a wellbore as a two-year inactive well or
three-year inactive well in order to qualify for the tax exemptions provided
for in the Tax Code, §§
RSA 201.053,
RSA 202.052, and
RSA
202.056.
(b) Definitions.
(1) Two-year inactive well--A well that has
not produced any hydrocarbons in more than one calendar month in the two years
prior to the date of certification by the Commission under this
section.
(2) Three-year inactive
well--A well that has not produced any hydrocarbons in more than one calendar
month in the three years prior to the date of certification by the commission
under this section.
(3) Eligible
well--Wells eligible under this section include those that:
(A) were previous producing or injection
wells that have not been plugged or abandoned; or
(B) have been plugged and abandoned;
or
(C) are active injection
wells.
(4) Well--A
wellbore with single or multiple completions.
(c) Certification. The commission or its
delegate may certify a well as a two-year inactive well or a three-year
inactive well. If the commission or its delegate declines to certify a well
administratively, the operator affected by this action may request a
hearing.
(d) Revocation of
Certification. Certification of a two-year inactive well or a three-year
inactive well may be revoked by the commission for cause which includes, but is
not limited to, receipt of information by the commission that a certified well
produced hydrocarbons in more than one calendar month in the applicable two or
three years prior to certification, or if production from other wells is
credited to the two-year inactive well or the three-year inactive well, or if a
certified well is reported to the commission to be capable of production but is
not capable of production. The Comptroller of Public Accounts will be notified
of any revocation.
(e) Certified
Wells.
(1) Three-year inactive wells. The
commission may not certify a three-year inactive well under this section after
February 29, 1996. Prior to applying to the Comptroller of Public Accounts for
the tax incentives listed in subsection (a) of this section, the operator of a
three-year inactive certified well shall file with the commission a test report
showing productive capability for the well. Production is presumed to begin on
this well test date. The certification remains with the well in the event of a
change of operator or ownership.
(2) Two-year inactive wells. The commission
may not designate a two-year inactive well under this section after February
28, 2010. An application for two-year inactive well certification shall be made
during the period of September 1, 1997, through August 31, 2009, to qualify for
the tax exemption. Certification will be issued upon the filing of a test
report showing the well's capability and an approval of application for
certification. Production is presumed to begin on the well test date as
reported on the appropriate report. The certification shall remain with the
well in the event of a change of operator or ownership.
