As used in this article 29, unless the context
otherwise requires:
(1)Coal means coal which has been processed into the form in which it is
sold or otherwise used. Such processing includes, but is not limited to, cleaning and
washing.
(1.5) Commercial production, for a commercial oil shale facility, means
production from such facility in excess of the first fifteen thousand tons per day of
oil shale or ten thousand barrels per day of shale oil, whichever is greater. The
calculation of the daily production shall be determined by dividing the total
production of a calendar month by the total number of days in such month.
(2)Executive director means the executive director of the department of
revenue.
(2.5) For tax years commencing on or after January 1, 2000, gas means
natural
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As used in this article 29, unless the context
otherwise requires:
(1) Coal means coal which has been processed into the form in which it is
sold or otherwise used. Such processing includes, but is not limited to, cleaning and
washing.
(1.5) Commercial production, for a commercial oil shale facility, means
production from such facility in excess of the first fifteen thousand tons per day of
oil shale or ten thousand barrels per day of shale oil, whichever is greater. The
calculation of the daily production shall be determined by dividing the total
production of a calendar month by the total number of days in such month.
(2) Executive director means the executive director of the department of
revenue.
(2.5) For tax years commencing on or after January 1, 2000, gas means
natural gas, coalbed methane, and carbon dioxide.
(3) Gross income means:
(a) For oil and gas, the net amount realized by the taxpayer for sale of the oil
or gas, whether the sale occurs at the wellhead or after transportation,
manufacturing, and processing of the product. Net amount shall be calculated
pursuant to rules promulgated by the department of revenue on the basis of the
gross lease revenues, less deductions for direct costs actually paid or accrued by
the taxpayer for transportation, manufacturing, and processing of the product. For
purposes of this subsection (3)(a), direct costs include depreciation. Where the
parties to the sale are related parties and the sales price is lower than the price for
which that oil or gas could otherwise have been sold to a ready, willing, and able
buyer and where the taxpayer was legally able to sell the oil or gas to such a buyer,
gross income shall be determined by reference to comparable arms-length sales of
like kind, quality, and quantity in the same field or area, less deductions for
transportation, manufacturing, and processing done prior to the sale. For purposes
of this subsection (3)(a), related parties shall be defined by the department of
revenue pursuant to rules and regulations.
(b) For metallic minerals, the value of ore immediately after its removal from
the mine, and does not include any value added subsequent to mining by any
treatment processes, such as crushing, grinding or concentration, by transportation
from the mine, or by marketing of such ore or any products derived therefrom, but
does not include income from the extraction or processing of ores or minerals from
mine waste or residue of previously processed ores.
(4) Gross proceeds, for oil shale, means the value of the oil shale at the
point of severance. Such value shall be determined by deducting from the first
sales price of the shale oil all costs, including direct and indirect expenditures, for:
(a) Equipment and machinery;
(b) Fragmenting, crushing, conveying, beneficiating, pyrolysis, retorting,
refining, and transporting; and
(c) Royalty payments.
(4.5) Local units of government locally impacted means units of
government in the geographic area wherein reside employees of the operation
producing the minerals and mineral fuels taxed pursuant to this article. The
geographic area shall be determined on the basis of residence as reported in
accordance with section 39-29-110 (1)(d).
(5) Metallic minerals means all minerals except molybdenum, oil and gas,
carbon dioxide, coal, oil shale, rock, sand, gravel, stone products, earths, limestone,
and dolomite.
(6) Molybdenum ore means ore which is mined primarily for the extraction
of molybdenum therefrom.
(6.5) For tax years commencing on or after January 1, 2000, oil means
crude oil and condensate.
(7) Transportation means the cost of moving identifiable, measurable oil or
gas, including gas that is not in need of initial separation, from the point at which it
is first identifiable and measurable to the sales point or other point where value is
established. Any compression downstream of the meter or measurement point is
deductible as a component of transportation. Gathering means the movement of
an unseparated, bulk production stream to a point, on or off the lease, where the
production stream undergoes initial separation into identifiable oil, gas, or free
water and is not deductible as transportation. This definition shall not be construed
to affect the legal relationship between royalty owners and lessees.