47.01.020 Definitions

When used in this Severance Tax Code, the following words and terms shall be interpreted as follows, unless the context clearly indicates a different meaning:

(a) "Avoidably Lost" means the nature of an incidental loss of, waste of, or damage to a mineral resource in the course of mineral development resulting from venting, flaring, or other activity when such activity has not previously been permitted or approved in writing by the authorized representative of the Secretary of the Interior as to applicable tribal or allotted lands.

(b) "Central Delivery Facility" means a common metering and delivery location at which substances described in Section 47.02.010 are collected from multiple wells or leases and intermingled;

(c) Cross-Lease Beneficial Use'' means an operator's use of substances described in Section 47.01.010 derived from lands subject to a tribal or allotted lease for the benefit of operations on other lands subject to a tribal or allotted lease operated by the same operator prior to the sale of such substances.

(d) "Entitled Proportionate Gross Working Interest" means the net revenue interest attributable to a working interest in a lease or minerals agreement covering lands within the territory of the Tribe, plus the proportionate share of any non-operating interests that burden that working interest.

(e) Lands" means real property in which the Tribe or an individual Indian allottee owns a legal or beneficial interest in a mineral estate, including reversionary interests following the expiration of leases or mineral development agreements, but excluding working interests, or interests carved there from, acquired by the Tribe or by an individual Indian in fee lands located within the boundaries of the Territory , unless or until such real property is accepted in trust for the benefit of the Indian mineral owner by the United States of America.

(f) Maximum Territory Price" means the value obtained as a result of applying the formula set forth in Section 47.02.080(b) of this Code.

(g) "Minerals Agreement'' means any joint venture, operating, production sharing, service, managerial, lease, contract, or other minerals agreement, or any amendment, supplement or other modification of such minerals agreement, providing for the exploration for, or extraction, processing, or other development of minerals in which an Indian mineral owner owns a beneficial or restricted interest, or providing for the sale or other disposition of the production or the products of such minerals.

(h) "Other Consideration" means the consideration other than cash, including consideration obtained through trades or exchanges of severed minerals.

(i) "Processing Costs" means reasonable actual costs incurred by the taxpayer to process gas for the removal of products described in Section 47.02.010 (generally natural gas liquids). When costs are incurred through use of a processing plant owned either in whole or in part by the taxpayer or an entity affiliated with the taxpayer, only the following costs may be included in the calculation of deductible costs for tax purposes: operating and maintenance expenses, overhead, depreciation and a return on undepreciated capital investment directly associated with the plant. The basis and method of depreciation shall not be changed once used, regard less of any changes in ownership of the plant.

(j) "Reservation" means the area of land located in the area defined by the December 21, 1882 U.S. Presidential Executive Order.

(k) "Tax Commissioner" means the Tax Commissioner of the Turtle Mountain Band of Chippewa Indians.

(l) "Territory" means the territory as defined in Article II, Jurisdiction, Section 2, of the Turtle Mountain Band of Chippewa Indians' Constitution.

(m) "Severance" means the physical separation or removal of a mineral from lands, including the extraction of methane or other gas.

(n) "Taxpayer" means an owner of an interest or person claiming ownership of an interest in substances described in Section 47.02.010 of this Code severed from lands subject to the jurisdiction of the Tribe, regardless of the fact that actual payment of tax may be made by a working interest owner or operator in behalf of the taxpayer.

(o) "Transportation Costs" means reasonable, actual costs incurred by the taxpayer for moving marketable products described in Section 47.01.010(b) of this code to a point of sale or other point of final disposition that is remote from the point of initial severance, separation, treatment or measurement (generally the point approved by the Bureau of Land Management for the purposes of royalty measurement). Not included in this definition are costs incurred by the taxpayer for the movement or removal from the production stream of products not described in Section 47.02.010 or products whose value is otherwise exempted from application of this Code or for compression intended to enhance production or to meet pipeline delivery pressure requirements. When costs are incurred on a transportation system owned either in whole or in part by the taxpayer or an entity affiliated with the taxpayer, only the following costs may be included in the calculation of deductible costs for tax purposes: operating and maintenance expenses, overhead, and depreciation and return on undepreciated capital investment directly associated with the transportation system. The basis and method of depreciation shall not be changed once used, regardless of any changes in ownership of the system.

(p) "Unavoidably Lost" means the nature of an incidental loss of, unavoidable waste of, or damage to a mineral resource in the course of mineral development resulting from venting, flaring or other activity when such activity and the resulting loss, waste or damage have been previously approved in writing by the Tribal Council or its authorized representative as to tribal lands or by the Secretary of the Interior or his authorized representative as to allotted lands.

(q) "Working interest" means the interest obtained by a mineral lessee or grantee of a minerals agreement in minerals or revenues attributable to the sale of minerals producible under such lease or minerals agreement, inclusive of overriding royalty interests or other non operating interests subsequently derived from the working interest.