§ 57-51-01 — Definitions

North Dakota § 57-51-01

• Jurisdiction: North Dakota
• Title 57: Taxation
• Ch. 57-51: Oil and Gas Gross Production Tax

Text

As used in this chapter:
1. "Barrel of oil" means forty-two United States gallons of two hundred thirty-one cubic
inches per gallon computed at a temperature of sixty degrees Fahrenheit [158.99 liters
computed at a temperature of 15.56 degrees Celsius].
2. "Commissioner" means the state tax commissioner.
3. "Field" means the geographic area underlaid by one or more pools, as defined by the
industrial commission.
4. "Gas" means natural gas and casinghead gas.
5. "Hub city" means a city with a population of twelve thousand five hundred or more,
according to the last official decennial federal census, which is located in a county that
has oil and gas gross production tax or oil extraction tax revenue collections attributed
to it, as reported by the tax commissioner in certifications made to the state treasurer,
in any three consecutive months during the twenty-four month period preceding
September first of the most recent odd-numbered year.
6. "Hub city school district" means the school district with the highest student enrollment
within the city limits of a hub city.
7. "Oil" means petroleum, crude oil, mineral oil, and casinghead gasoline.
8. "Person" includes partnership, corporation, limited liability company, association,
fiduciary, trustee, and any combination of individuals.
9. "Posted price" means the price specified in publicly available posted price bulletins or
other public notices, net of any adjustments for quality and location.
10. "Shallow gas" means gas produced from a gas well completed in or producing from a
shallow gas zone, as certified to the tax commissioner by the industrial commission.
11. "Shallow gas zone" means a strata or formation, including lignite or coal strata or
seam, located above the depth of five thousand feet [1524 meters] below the surface,
or located more than five thousand feet [1524 meters] below the surface but above the
top of the Rierdon formation, from which gas is or may be produced.
12. "Transportation costs" means the costs incurred for transporting oil established in
accordance with the first applicable of the following methods:
a. Actual costs incurred under the arm's-length contract between the producer and
the transporter of oil.
b. An applicable common carrier rate established and filed with the North Dakota
public service commission, or the appropriate federal jurisdictional agency.
c. When no common carrier rate would be applicable, the transportation costs are
those reasonable costs associated with the actual operating and maintenance
expenses, overhead costs directly attributable and allocable to the operation and
maintenance, and either depreciation and a return on undepreciated capital
investment, or a cost equal to a return on the investment in the transportation
system, as determined by the commissioner.