NAC522.343. Reduced administrative fee for new production.  


Latest version.
  •      1. Notwithstanding the provisions of NAC 522.342, the amount of the administrative fee that a producer or purchaser of oil or natural gas must pay pursuant to subsection 2 of NRS 522.150 for new production is one-half cent per barrel of oil or per 50,000 cubic feet of natural gas, as appropriate, and in accordance with the provisions of this section.

         2. Upon the filing of Form 5, the well completion report, pursuant to NAC 522.510, the division shall determine whether the production from the well that is the subject of the report qualifies as new production. If the division determines that the production from the well qualifies as new production, the producer or purchaser is entitled to pay the administrative fee required by subsection 2 of NRS 522.150 for that new production at the reduced rate prescribed in subsection 1 for 12 consecutive calendar months, beginning on the put-on-production date reported in Form 5 for that well. At the end of the 12-month period, the producer or purchaser must pay the administrative fee required by NRS 522.150 for further production from the well in the amount prescribed in NAC 522.342.

         3. A producer or purchaser may, pursuant to NRS 522.110, challenge a determination made by the division pursuant to subsection 2.

         4. As used in this section, “new production” means production from a new or existing well that is completed in a new interval, as determined by the division.

     (Added to NAC by Comm’n on Mineral Resources by R165-99, eff. 1-27-2000)

Notation

Reviser’s Note.

      The regulation of the commission on mineral resources filed with the secretary of state on January 27, 2000 (LCB File No. R165-99), the source of NAC 522.343 (section 1 of the regulation), contains the following provision not included in NAC:

      “Sec. 2.  If the commission on mineral resources repeals section 1 of this regulation [NAC 522.343], a producer or purchaser of oil or natural gas who, on the date that section is repealed, is paying the administrative fee required by subsection 2 of NRS 522.150 at the reduced rate set forth in that section, is entitled to continue paying the administrative fee at the reduced rate until the end of the 12-month period for which the reduced rate applies.”