N.D.C.C. § 57-51-02.5 — Exemption of gas for electrical generation at well site

Gas burned at the well site to power an electrical generator that consumes at least
seventy-five percent of the gas from the well is exempt from the tax under section 57-51-02.2.
57-51-02.6. Temporary exemption for oil and gas wells employing a system to avoid
flaring.
Gas is exempt from the tax under section 57 -51-02.2 for a period of two years and thirty
days from the time of first production if the gas is:
1. Collected and used at the well site to power an electrical generator that consumes gas
from the well; or
2. Collected at the well site by a system that intakes at least seventy -five percent of the
gas and natural gas liquids volume from the well for beneficial consumption by means
of compression to liquid for use as fuel, transport to a processing facility, production of
petrochemicals or fertilizer, conversion to liquid fuels, separating and collecting over
fifty percent of the propane and heavier hydrocarbons, or other value-added processes
as approved by the industrial commission.