North Dakota Oil Producers Report And Oil Purchasers Report Instructions Sheet (Page 14 of 23) in pdf

HORIZONTAL REENTRY WELL: A horizontal well which is reentered and recompleted in a vertical well bore after

March 31, 1995, and is certified as qualifying by the Industrial Commission pursuant to N.D. Admin. Code § 81-09-03-10.

Code HR

An exempt horizontal reentry well which is eligible for a 9-month exemption pursuant to N.D.C.C. § 57-51.1-03. A

9-month exemption is allowed for each reentry. The HR code must be used to report the sale of oil produced

during the 9-month exempt period. After the 9-month exempt period expires, the taxable status of the horizontal

reentry well reverts to the well code that was applicable before the 9-month exempt period.

TWO-YEAR INACTIVE WELL: A well that meets the definition of a two-year inactive well pursuant to N.D.C.C. § 57-51.1-01

and is certified as qualifying by the Industrial Commission.

Code IE

An exempt well which is eligible for a 10-year exemption pursuant to N.D.C.C. § 57-51.1-03. The IE code must be

used to report the sale of oil produced during the 10-year exempt period. After the 10-year exempt period expires,

the taxable status of the two-year inactive well reverts to the well code that was applicable before the 10-year

exempt period.

RECOVERY PROJECT WELL: A qualifying secondary or tertiary recovery project as certified by the Industrial Commission

prior to July 1, 1991, that is eligible for a reduced oil extraction tax rate of 4 percent pursuant to N.D. Admin. Code

§ 81-09-03-05.

Code SR

A secondary recovery project well.

Code TR

A tertiary recovery project well.

RECOVERY PROJECT WELL: A qualifying secondary or tertiary recovery project as certified by the Industrial Commission

after June 30, 1991, that is eligible for an incremental oil exemption and a reduced oil extraction tax rate of 4 percent pursuant to

N.D.C.C. § 57-51-31-03.(5) and N.D. Admin. Code § 81-09-03-05.3.

Code ER

See special instructions at the beginning of the T-12 Worksheet Instructions for procedures on reporting this code.

STRIPPER WELL: A stripper well property which is certified as qualifying by the Industrial Commission and is eligible for an

exemption pursuant to N.D. Admin. Code § 81-09-03-07.

Code S1

A stripper well property whose average daily production of oil per well did not exceed ten barrels per day for wells

of a depth of 6,000 feet or less. An S1 code also includes a well which qualified for the stripper exemption under

the ten barrel per day provision of the old law (i.e., prior to 1987 N.D. Sess. Laws ch. 724) regardless of well depth.

Code S2

A stripper well property whose average daily production of oil per well did not exceed fifteen barrels per day for

wells of a depth of more than 6,000 feet but not more than 10,000 feet.

Code S3

A stripper well property whose average daily production of oil per well did not exceed thirty barrels per day for

wells of a depth of more than 10,000 feet (twenty barrels per day for periods prior to July 1, 1995).

WORK-OVER PROJECT WELL: A qualifying well on which a work-over project was performed as certified by the Industrial

Commission pursuant to N.D. Admin. Code § 81-09-03-09.

Code WP

An exempt work-over project well which is eligible for a 12-month exemption starting from the first day of the

third month after completion of the work-over. The WP code must be used to report the sale of oil produced during

the 12-month exempt period.

Code W4

If the work-over project well receives a work-over exemption after June 30, 1993, production from the well is

eligible for a reduced oil extraction tax rate of 4 percent after the 12-month exempt period. The W4 code must only

be used as indicated below.

Well Code Before

Well Code During

Well Code After

12-month Exemption

Page 13

North Dakota Oil Producers Report And Oil Purchasers Report Instructions Sheet Page 14

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