North Dakota Oil Producers Report And Oil Purchasers Report Instructions Sheet (Page 19 of 23) in pdf

North Dakota Oil Producers Report And Oil Purchasers Report Instructions Sheet Page 19

OTHER WELL:

Code WW

A well which is not a new well (i.e., spudded prior to April 1987) and is not otherwise eligible for an oil extrac-

tion tax exemption or the rate reduction. The applicable tax rate is 6.5 percent.

Taxable Value of Oil - For well codes EN, HE, HR, IE, S1, S2, S3, and WP, enter zero. For well codes NW, SR, TR, W4, and

WW, enter the value from Block 4.

Total Extraction Tax Due - This is the total extraction tax due for this well. Multiply the value in Block 8 (Taxable Value) by

the applicable oil extraction tax rate:

• 4%

- Well codes NW, SR, TR, and W4.

• 6.5% - Well code WW.

• 0%

- Well codes EN, HE, HR, IE, S1, S2, S3 and WP.

NOTE: If the average price of a barrel of crude oil for any consecutive 5-month period in any year is $33 or more, the new well

and work-over exemptions become ineffective and the extraction tax rate for oil produced from new wells, eligible work-over

wells, and qualifying secondary or tertiary recovery projects is increased from 4% to 6.5% of gross value. If, after the referenced

trigger provisions become effective, the average price of a barrel of crude oil for any consecutive 5-month period in any year

falls to less than $33, the new well and work-over exemptions are reinstated and the extraction tax rate for oil produced from new

wells, eligible work-over wells, and qualifying secondary or tertiary recovery projects is reduced from 6.5% to 4% of gross

value.

10.

Tax Paid by Others - Enter the extraction tax to be paid by others. If others paid the total tax, Block 10 will equal Block 9.

11.

Extraction Tax Paid with Report - Subtract the value in Block 10 from the value in Block 9. If the total tax is paid by the

producer, Block 11 will equal Block 9.

•

Note: The total of Block 10 and Block 11 must equal Block 9.

Purchaser’s Name(s) - Enter the name of the party that purchased the oil for each lease. A total of three may be entered.

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North Dakota Oil Producers Report And Oil Purchasers Report Instructions Sheet Page 19