North Dakota Oil Producers Report And Oil Purchasers Report Instructions Sheet Page 17

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1.
Barrels of Oil Sold - Report volume of oil sold 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 sold. If changes occurred 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 received for the oil sold rounded to the nearest cent. Include any bonus,
premium or other price incentive received.
• Calculate average price by dividing the gross value of oil sold in Block 2 by the barrels of oil sold in Block 1.
2.
Value of Oil Sold - Enter the gross value of oil sold pursuant to the valuation provisions in N.D.C.C. § 57-51-02.3. Round the
value entered to the nearest cent.
3.
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 sold reported in Block 2.
4.
Taxable Value of Oil - Subtract the value in Block 3 (Value of Exempt Government Royalties) from the value in Block 2 (Value
of Oil Sold).
5.
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.
6.
Taxes Paid by Others - Enter production tax to be paid by others. If others paid the total tax, Block 6 will equal Block 5.
7.
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
producer, Block 7 will equal Block 5.
• Note: The total of Block 6 and Block 7 must equal Block 5.
OIL EXTRACTION TAX
B.
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.”
C.
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.
Only one exemption is allowed per well bore. The EN code must be used to report the purchase of oil produced
during the 15-month exempt period.
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 16

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