North Dakota Oil Producers Report And Oil Purchasers Report Instructions Sheet Page 2

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General Reporting Instructions For
Form T-10 Oil Producer’s Report and Form T-12 Oil Purchaser’s Report
1.
WHO MUST FILE:
Producer/Operator/In-Kind Interest: The operator of a producing property must file a monthly T-10 Oil Producer’s Report unless a
written exception is granted allowing a working interest owner to assume the reporting responsibilities of an operator who does not
have a working interest in production.
The operator of a property must report:
• One hundred percent (100%) of the production volume each month.
• The sales volume and gross value at the well of the oil the operator actually sold.
• All oil not sold at the well including any oil used, lost, stolen, or otherwise unaccounted for after it has been produced.
A working interest owner who takes oil in-kind must file a monthly T-10 Oil Producer’s Report that reports the sales volume and the
gross value at the well of the oil taken in kind.
The operator of a well is required to notify the Office of State Tax Commissioner (Commissioner) when:
• Oil is to be taken in-kind from a well, including who will take oil in-kind and at what percentage.
• The well operator changes, including notification of the new operator’s name and address.
Purchaser/Processor: The purchaser of oil at the well must file a monthly T-12 Oil Purchaser’s Report as follows:
• If the purchase of oil at the well is an arm’s length transaction, the first purchaser must file the oil purchaser’s report.
• If the first purchase of oil at the well is a non-arm’s length transaction and the oil is resold at the well to an arm’s length
purchaser, the second purchaser must file the oil purchaser’s report.
• If the first purchase of oil at the well is a non-arm’s length transaction and the oil is not resold at the well but is sold down-
stream, the purchaser at the well must file the oil purchaser’s report. The oil is subject to valuation pursuant to North Dakota
Century Code (N.D.C.C.) § 57-51-02.3.
Pursuant to North Dakota Administrative Code (N.D. Admin. Code) § 81-09-02-09 an arm’s length contract means a contract or
agreement executed by a willing buyer and a willing seller, neither party being affiliated. For purposes of this definition, a contract or
agreement between affiliated parties is any contract or agreement between a parent and a wholly or partially owned subsidiary, or
between entities wholly or partially owned by a common parent, or between persons otherwise affiliated through ownership or eco-
nomic relationships.
A processor who recovers condensate from a gas stream in a gathering system after the custody transfer meter but before processing at
a gas plant must file a monthly T-12 Oil Purchaser’s Report. See #14 for the procedures for reporting condensate.
2.
TIME FOR FILING:
The monthly T-10 Oil Producer’s Report and the T-12 Oil Purchaser’s Report are due on or before the twenty-fifth day of the month
following the month of production.
The gross production and oil extraction taxes on oil are due and payable on the twenty-fifth day of the month following the month of
production. Estimated payments will not be accepted.
If the due date for filing a report and paying the tax falls on a Saturday, Sunday, or legal holiday, the report and payment are due on the
next business day.
Page 1

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