1. All NM Taxes
  2. Frequently Asked Questions
  3. What does “oil and gas proceeds” mean?

What does “oil and gas proceeds” mean?

Oil and gas proceeds are amounts derived from production and payable to recipients (remittees) as royalty interest, overriding royalty interest, production payment interest, working interest, or any other amount expressed as a right to a specified interest either in the cash proceeds from the sale of oil and gas production, or in the cash value of that production.