Receipts from the sale of the following items may not be deducted from gross receipts since these items do not become ingredient or component parts of a construction project within the meaning of Section 7-9-51 NMSA 1978:

1. A. drilling equipment, including derricks, blocks, substructures, draw-works, flooring, rotary tables, engines, mud pumps, pipe racks, tanks, doghouses, hoses, water and fuel lines, water well equipment, blowout preventers and other drilling equipment and tools;
2. B. drill stems, drill collars, subs and kelly;
3. C. drilling bits, core bits and barrels;
4. D. fishing tools;
5. E. fuels, including natural gas, LPG, diesel and electricity; and

6. F. drilling fluids, including mud, additives, air and lost circulation materials.

   [12/5/69, 3/9/72, 11/20/72, 3/20/74, 7/26/76, 6/18/79, 4/7/82, 5/4/84, 4/2/86, 11/26/90, 11/15/96; 3.2.209.8 NMAC - Rn, 3 NMAC 2.51.8 & A, 5/31/01]