1. A. The division shall accept applications for qualification of production restoration projects for the production restoration incentive tax exemption pursuant to the Natural Gas and Crude Oil Production Incentive Act, NMSA 1978, Sections 7-29B-1 through 7-29B-6.
2. B. 19.15.6.9 NMAC applies to gas or oil wells division records show had 30 days or less production in a period of 24 consecutive months beginning on or after January 1, 1993 upon which the operator commenced operations to restore production after June 16, 1995.
3. C. To be eligible for the exemption, the operator shall apply for and receive division approval. No production restoration project commenced prior to June 16, 1995 qualifies.

4. D. Applications.

   (1) An operator shall file an application with the division within 12 months of the production restoration.

   (2) The operator shall file the application on behalf of the project’s interest owners.

   (3) The operator shall file the application on form C-139 using the division’s web-based online application.

5. E. Approval, certification, notification and hearing.

   (1) Project approval and certification.

   (a) The division shall approve a project and issue a certification to the operator designating the gas or oil well as a production restoration project when the operator proves that:

   (i) after June 16, 1995, the operator has commenced a process to return the well to production; and

   (ii) division records show the well had 30 days or less of production in any period of 24 consecutive months beginning on or after January 1, 1993.

   (b) The exemption shall apply beginning the first day of the month following the date the operator returned the well to production as certified by the division.

   (2) Notification to the secretary of taxation and revenue. The division shall notify the secretary of taxation and revenue of the approval. This notice shall identify the gas or oil well as a production restoration project and certify the date production was restored.

   (3) Hearing. The division shall consider applications without a hearing. If the appropriate division district office denies an application, the division upon the applicant’s request shall set the application for hearing. An application the appropriate division district office has not acted upon within 30 days from the date it is filed shall be deemed denied.

[19.15.6.9 NMAC - Rp, 19.15.1.31 NMAC, 12/1/08]