N.M. Admin. Code § 3.2.210.9

Current through Register Vol. 35, No. 23, December 10, 2024

Section 3.2.210.9 - WELL CONSTRUCTION SERVICES

A. Receipts from the sale of the following services in connection with well drilling are receipts from the sale of construction services as defined in Section 7-9-3.4 NMSA 1978, and may be deducted from gross receipts if all other requirements of Section 7-9-52 NMSA 1978, are met:

(1) dirt work and surfacing;

(2) digging cellars and pits;

(3) drilling ratholes;

(4) drilling water wells;

(5) laying water and fuel lines;

(6) directional drilling services;

(7) casing crew services;

(8) cementing services;

(9) drill stem testing; and

(10) fishing jobs.

B. Receipts from the sale of the following services in connection with well drilling are not receipts from the sale of construction services within the meaning of Section 7-9-3.4 NMSA 1978 and may not be deducted from gross receipts:

(1) repairing drilling equipment;

(2) hauling water and mud;

(3) hauling drilling equipment, rigging-up and rigging-down;

(4) field inspecting drill collars and drill stems; and

(5) furnishing compressed air.

C. On or after January 1, 2013, receipts from the sale of the following services in connection with well drilling are receipts from the sale of construction-related services as defined in Section 7-9-52 NMSA 1978 and are deductible under Section 7-9-52 NMSA 1978 if all the requirements of that section are met:

(1) hauling water and drilling mud;

(2) hauling drilling equipment, rigging-up and rigging-down;

(3) field inspecting drill collars and drill stems; and

(4) furnishing compressed air.

N.M. Admin. Code § 3.2.210.9

12/5/69, 3/9/72, 11/20/72, 3/20/74, 7/26/76, 6/18/79, 4/7/82, 5/4/84, 4/2/86, 11/26/90, 11/15/96; 3.2.210.9 NMAC - Rn, 3 NMAC 2.52.9 & A, 5/31/01; A, 12/14/12