NMSA 1978 Chapter 7 — Taxation

NMSA 1978, § 7-32-2

Definitions

Official textnmonesource.comlast amended 202517 subsections

As used in the Oil and Gas Ad Valorem Production 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 any product in any manner whatsoever;

# D.

"value" means the actual price received for products at the production unit, except as otherwise provided in the Oil and Gas Ad Valorem Production 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 Ad Valorem Production Tax Act;

# H.

"person" means any individual, estate, trust, receiver, business trust, corporation, firm, copartnership, cooperative, joint venture, association 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.

"assessed value" means the value against which tax rates are applied;

# K.

"tax" means the oil and gas ad valorem production tax; and

# L.

"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.

Amendment history

1953 Comp., § 72-22-2, enacted by Laws 1959, ch. 55, § 2; 1977, ch. 249, § 56; 1980, ch. 97, § 7; 1986, ch. 20, § 101; 2005, ch. 130, § 9; 2021, ch. 65, § 33; 2025, ch. 130, § 131.

Source: official source (NMSA chapter on nmonesource.com)

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