Reporting Instructions Form For Oil And Gas Taxes - North Dakota Office Of State Tax Commissioner Page 19

If the monthly calculation on the information schedule results in a gain, tax is due and is reported on the T-12 Oil Report. If

the monthly calculation on the information schedule results in a loss, the purchaser is only required to file the information

schedule.

A volume loss may be carried forward to offset a volume gain in subsequent periods. A volume loss may be carried forward for

three years after the due date of the return for the production month in which the loss was incurred.

The T-12 Oil Report is used to report and pay the gross production and oil extraction tax due on a volume gain. Refer to

the T-12 Oil Report instructions for completing this report. Special instructions used for the reporting of volume gains on

the T-12 Oil Report are:

Block 1. Total barrel gain from information schedule or from Block 6 on the Schedule T-83.

Block 2. Use the average price per barrel paid by the purchaser for the period reported to calculate the value.

Block A. Pool Code: Use pool code 99.

Block B. Well Code: Use well code WW.

API Number: Use the group number assigned by the Commissioner to report system-wide volume gains (i.e., 33-201-Z123).

Block D. Posting Code: Use posting code VOL1.

NOTE: No exempt government royalty may be claimed, as the source of this oil is unknown. Lease Name, Oil Gravity,

or Other Party Federal I.D. Number fields are not required.

Oil Transporter :

Each operator of an oil pipeline in North Dakota must provide the Commissioner with information showing its volume gains

and volume losses for the calendar year. The information may be submitted in the form of the pipeline’s “over

and

short” report compiled during the ordinary course of business. The annual information must be submitted by the twenty-

fifth day of February following the end of the calendar year.

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