NMSA 1978, § 7-31-2 — Definitions

As used in the Oil and Gas Emergency School Tax Act:

# A.

"department" 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 oil, slop oil 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.