Definition(s)

Stripper Well Property

“Stripper well property” means an oil or gas producing property that the taxation and revenue department assigns a single production unit number (PUN) and:

  1. if an oil producing property, produced a daily average of less than 10 barrels of oil per eligible well per day for the preceding calendar year;
  2. if a gas producing property, produced a daily average of less than 60,000 cubic feet of gas per eligible well per day during the preceding calendar year; or
  3. if a property with wells that produce both oil and gas, produced a daily average of less than 10 barrels of oil per eligible well per day for the preceding calendar year, as determined by converting the volume of gas the well produced to barrels of oil by using a ratio of 6000 cubic feet to one barrel of oil.1

Source: Oil and Gas, New Mexico Administrative Code Title 19, Chapter 15, January 2013. Regulations

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