NDAC 81-09-02-16
Exemption for lease use gas
Cite as N.D. Admin. Code ยง 81-09-02-16
Any gas taken directly from the wellhead or returned to the lease from a treating or processing
plant and used in the production of oil or gas is exempt from taxation. This exemption is for gas used in
drilling for or producing oil or gas or repressurization of a reservoir. Examples of exempt gas include,
but are not limited to, gas used as fuel for heater-treaters or separators or in lift or injection operations.