2023 New Mexico Statutes › Chapter 7 - Taxation › Article 31 - Oil and Gas Emergency School Tax › Section 7-31-2 - Definitions.

As used in the Oil and Gas Emergency School Tax Act:
A. "commission", "department" or "division" means the taxation and revenue department, the secretary of taxation and revenue or any employee of the department exercising authority lawfully delegated to that employee by the secretary;
B. "production unit" means a unit of property designated by the department from which products of common ownership are severed;
C. "severance" means the taking from the soil of any product in any manner whatsoever;
D. "value" means the actual price received from products at the production unit, except as otherwise provided in the Oil and Gas Emergency School Tax Act;
E. "product" or "products" means oil, including crude, slop or skim oil and condensate; natural gas; liquid hydrocarbon, including ethane, propane, isobutene, normal butane and pentanes plus, individually or any combination thereof; and non-hydrocarbon gases, including carbon dioxide and helium;
F. "operator" means any person:
(1) engaged in the severance of products from a production unit; or
(2) owning an interest in any product at the time of severance who receives a portion or all of such product for the person's interest;
G. "purchaser" means a person who is the first purchaser of a product after severance from a production unit, except as otherwise provided in the Oil and Gas Emergency School Tax Act;
H. "person" means any individual, estate, trust, receiver, business trust, corporation, firm, copartnership, cooperative, joint venture, association, limited liability company or other group or combination acting as a unit, and the plural as well as the singular number;
I. "interest owner" means a person owning an entire or fractional interest of whatsoever kind or nature in the products at the time of severance from a production unit or who has a right to a monetary payment that is determined by the value of such products;
J. "stripper well property" means a crude oil or natural gas producing property that is assigned a single production unit number by the department and is certified by the oil conservation division of the energy, minerals and natural resources department pursuant to the Natural Gas and Crude Oil Production Incentive Act [7-29B-1 to 7-29B-6 NMSA 1978] to have produced in the preceding calendar year:
(1) if a crude oil producing property, an average daily production of less than ten barrels of oil per eligible well per day;
(2) if a natural gas producing property, an average daily production of less than sixty thousand cubic feet of natural gas per eligible well per day; or
(3) if a property with wells that produce both crude oil and natural gas, an average daily production of less than ten barrels of oil per eligible well per day, as determined by converting the volume of natural gas produced by the well to barrels of oil by using a ratio of six thousand cubic feet to one barrel of oil;
K. "average annual taxable value" means as applicable:
(1) the average of the taxable value per one thousand cubic feet, determined pursuant to Section 7-31-5 NMSA 1978, of all natural gas produced in New Mexico for the specified calendar year as determined by the department; or
(2) the average of the taxable value per barrel, determined pursuant to Section 7-31-5 NMSA 1978, of all oil produced in New Mexico for the specified calendar year as determined by the department;
L. "tax" means the oil and gas emergency school tax; and
M. "volume" means the quantity of product severed reported using:
(1) oil, condensate and slop oil in barrels; and
(2) natural gas, liquid hydrocarbons, helium and carbon dioxide in thousand cubic feet at a pressure base of fifteen and twenty-five thousandths pounds per square inch.
History:
1953 Comp., § 72-21-2, enacted by Laws 1959, ch. 54, § 2; 1977, ch. 249, § 55; 1980, ch. 97, § 6; 1986, ch. 20, § 100; 1993, ch. 360, § 1; 1999, ch. 256, § 8; 2005, ch. 130, § 7; 2021, ch. 65, § 32.
ANNOTATIONS
The 2021 amendment,
effective July 1, 2021, defined "volume" and revised the definition of "product", as used in the Oil and Gas Conservation Tax Act; in Subsection E, after "means oil", deleted "natural gas or liquid hydrocarbon, individually or any combination thereof, carbon dioxide, helium or a non-hydrocarbon gas" and added the remainder of the subsection; and added Subsection M.
The 2005 amendment,
effective July 1, 2005, in Subsection E, defined "product" to include helium or non-hydrocarbon gas.
The 1999 amendment.
effective June 18, 1999, added Subsections J and K, and redesignated former Subsection J as Subsection L.
The 1993 amendment,
effective June 18, 1993, inserted "limited liability company" in Subsection H; and added Subsection J, making related grammatical changes.