North Dakota Oil Producers Report And Oil Purchasers Report Instructions Sheet (Page 13 of 23) in pdf

GROSS PRODUCTION TAX

Barrels of Oil Purchased - Report volume of oil purchased adjusted for temperature and BS & W. Round to two places.

1a.

Posted Price Per Barrel - Report the posted price (prior to any adjustments) used to value the oil purchased. If changes oc-

curred in the posted price during the month, report a weighted average price based on the number of days applicable to each

actual posted price.

1b.

Average Price Per Barrel - Report the average price paid for the oil purchased rounded to the nearest cent. Include any bonus,

premium, or other price incentive paid.

• Calculate average price by dividing the gross value of oil sold in Block 2 by the barrels of oil sold in Block 1.

Value of Oil Purchased - Enter the gross value paid for the oil pursuant to the valuation provisions in N.D.C.C. § 57-51-02.3.

Round the value entered to the nearest cent.

Value of Exempt Government Royalties - Enter value of exempt federal, state, Indian, and other municipality royalties. The

value shall be for royalties actually paid, but it shall not exceed the amount calculated by taking the royalty percentage times the

value of oil purchased reported in Block 2.

Taxable Value of Oil - Subtract the value in Block 3 (Value of Exempt Government Royalties) from Block 2 (Value of Oil

Purchased).

Total Production Tax Due - Multiply the value in Block 4 (Taxable Value) by the 5 percent Gross Production Tax rate. This is

the total production tax due from this well.

Taxes Paid by Others - Enter production tax to be paid by others. If others paid the total tax, Block 6 will equal Block 5.

Production Tax Paid with the Report - Subtract the value in Block 6 from the value in Block 5. If the total tax is paid by the

purchaser, Block 7 will equal Block 5.

• Note: The total of Block 6 and Block 7 must equal Block 5.

OIL EXTRACTION TAX

Number of Wells in Property - Enter the number of producing wells in the property during the month. If an individual well is

being reported, enter “1.”

Well Code - Using the definitions below, enter appropriate well code.

NEW WELL: A well drilled and completed after April 27, 1987, that meets the definition of a new well pursuant to

N.D. Admin. Code § 81-09-03-02(5).

Code EN

An exempt new well which is eligible for a 15-month exemption pursuant to N.D. Admin. Code § 81-09-03-06.

The EN code must be used to report the purchase of oil produced during the 15-month exempt period. Only one

exemption is allowed per well bore.

Code NW

A new well which is eligible for a reduced oil extraction tax rate of 4 percent. The NW code must be used to report

the purchase of oil produced after the 15-month exempt period has expired.

HORIZONTAL NEW WELL: A horizontal well which is drilled and completed as a horizontal well after March 31, 1995, and

is certified as qualifying by the Industrial Commission.

Code HE

An exempt horizontal well which is eligible for a 24-month exemption pursuant to N.D.C.C. § 57-51.1-03. The HE

code must be used to report the sale of oil produced during the 24-month exempt period. The well bore of a

horizontal well consists of both the vertical and horizontal segments. Only one exemption is allowed per well bore.

Code NW

A new well which is eligible for a reduced oil extraction tax rate of 4 percent. The NW code must be used to report

the purchase of oil produced after the 24-month exempt period has expired.

Page 12

North Dakota Oil Producers Report And Oil Purchasers Report Instructions Sheet Page 13

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