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Income Tax Act 2007

Income - Income from petroleum mining

CT 6B: Meaning of petroleum mining operations

You could also call this:

“Definition of activities involved in finding and producing oil”

Petroleum mining operations are activities related to finding and producing oil. These include looking for oil, getting ready to produce oil, actually producing oil, and handling the oil before it’s sent to buyers or users.

When you’re doing these activities, you might be searching for oil, setting up the area where you’ll produce oil, or actually producing the oil. You might also be processing, storing, or moving the oil before it goes to someone who will buy it, use it, or process it further.

However, some activities aren’t considered petroleum mining operations. These are things done to the oil after it has been separated into crude oil, condensate, or natural gas. If you’re turning the oil into liquid or compressing it, taking out specific parts of it, or making new products from it, these aren’t petroleum mining operations. Also, if you’re doing these things away from where the oil is produced, they’re not considered petroleum mining operations.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1614961.

Topics:
Money and consumer rights > Taxes
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CT 6: Meaning of petroleum miner, or

“Definition of a petroleum miner in the oil and gas industry”

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CT 7: Meaning of petroleum mining asset, or

“What counts as equipment or property used for petroleum mining”

Part C Income
Income from petroleum mining

CT 6BMeaning of petroleum mining operations

  1. Petroleum mining operations means an activity included in those described in subsection (2) and not excluded by subsection (3).

  2. The activities are those carried out in connection with—

  3. prospecting or exploring for petroleum:
    1. developing a permit area for producing petroleum:
      1. producing petroleum:
        1. processing, storing, or transmitting petroleum before its dispatch to a buyer, consumer, processor, refinery, or user.

            1. The activities do not include further treatment to which all the following apply:

            2. it occurs after the well stream has been separated and stabilised into crude oil, condensate, or natural gas; and
              1. it is done—
                1. by liquefaction or compression; or
                  1. for the extraction of constituent products; or
                    1. for the production of derivative products; and
                    2. it is not treatment at the production facilities.

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                      Notes
                      • Section CT 6B: inserted, on , by section 327 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                      • Section CT 6B(2)(e): repealed, on , by section 29(1) (and see section 29(3) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                      • Section CT 6B list of defined terms removal or restoration operations: repealed, on , by section 29(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).