Section 43-02-09-04 - Application for workover project determinationThe applicant has the burden of establishing entitlement to the exemption provided in North Dakota Century Code section 57-51.1-03 and upon completion of the workover project shall submit all information necessary for a determination by the director. The cost of a workover project includes only direct costs for material, equipment, services, and labor used in the workover project. Labor and services included must be performed onsite and materials and equipment must be used onsite. The value of capital equipment removed from the site must be deducted from the cost of the project.
The application must include the following:
1. The name and address of the applicant and the name and address of the person operating the well, if different. 2. The well name and number and legal description of the well. 3. The dates during which the workover rig was in service actually performing work on the workover project, and the date the workover was completed. 4. A detailed list identifying all labor, services, and materials used and equipment replaced during the workover project, the cost of each item, and whether the replacement equipment was new or used. Also, the value of all of the equipment removed from service must be listed. The list must be verified by a person knowledgeable in the costs of workover projects and the value of used equipment. At any time the director may require the applicant to submit actual invoices to verify any costs set forth in the application. 5. A sundry notice (form 4) detailing all work done. 6. The average daily oil production from the well during the first two months after completion of the project, if the costs of the project did not exceed sixty-five thousand dollars. The project is completed and the two-month period commences the first day of production through the wellhead equipment after the workover rig is removed from over the well. 7. All gauge tickets of oil produced in incomplete months during the first two months after completion of the workover, and the volume of oil stored on the well premises immediately prior to the commencement of the workover project. If the application does not contain sufficient information to make a determination, the director will advise the applicant of the additional information that must be filed in order to make a determination. If the requested additional information is not received within fifteen working days after receipt of the request, the application will be returned to the applicant.
N.D. Admin Code 43-02-09-04
Effective May 1, 1990; amended effective May 1, 1992; May 1, 1994; July 1, 1996; August 1, 1999.General Authority: NDCC 38-08-04, 57-51.1-03
Law Implemented: NDCC 57-51.1-03