Rule: 17.80.204 Prev     Up     Next    
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Subchapter: Tax Abatement and Classification
Latest version of the adopted rule presented in Administrative Rules of Montana (ARM):

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(1) A taxpayer who wishes to obtain a certificate of eligibility for classification of a carbon dioxide pipeline as class fifteen property under 15-6-158, MCA, or for abatement of property tax liability under 15-24-3111, MCA, shall file an application on a form provided by the department pursuant to ARM 17.80.202. The application must contain the following information:

(a) the name and address of the applicant;

(b) the name, address, telephone number, and e-mail address of a contact person for the application;

(c) a description of the pipeline for which certification is sought, including its associated equipment, structures, interconnections, and injection points;

(i) for pipelines still under construction at the end of a tax year, this would be a general description of the complete pipeline, with a more detailed description of that portion for which certification is sought;

(d) a map or drawing showing the location of the pipeline and its associated equipment, structures, and interconnections and all injection points;

(e) the date construction of the pipeline commenced;

(f) certification that the standard prevailing rate of wages for heavy construction were, or will be, paid during construction of the pipeline in Montana;

(g) a list of the carbon sequestration points meeting the requirements of 15-6-158, MCA, and this subchapter to which the carbon dioxide is, or will be, transported, including:

(i) the location, or proposed location, of each sequestration point; and

(ii) documentation of the amount of carbon dioxide that is expected to be transported to each sequestration point throughout each year;

(h) certification that each source of the carbon dioxide transported in the pipeline is, or will be, a plant or facility that produces or captures carbon dioxide, within the meaning of 15-6-158(2)(g), MCA, and is not, or will not be, a well from which the primary product is carbon dioxide;

(i) a list of all plants or facilities that produce or capture, or will produce or capture, the carbon dioxide transported, or to be transported, in the pipeline;

(j) certification that the pipeline transports, or will transport, carbon dioxide to one or more underground injection wells for which the Montana Board of Oil and Gas Conservation has issued, or will have issued, a final underground injection control (UIC) permit, including specification of the American Petroleum Institute number and UIC permit number for each well. If some or all permits have not been issued at the time of the application, the taxpayer shall update the certification annually, pursuant to ARM 17.80.225(2), by providing the department with the information required under this subsection for permits issued after the date of the application; and

(k) documentation of the purity level of the carbon dioxide transported, or to be transported, in the pipeline. For pipelines that are not operational at the time of the application, the applicant shall submit this documentation within 60 days after commencing commercial operation.

(2) Upon request of the department, an applicant shall submit to the department documentation supporting any certification required under this rule.

(3) If any information required under this rule already has been submitted to another Montana state agency, in lieu of submitting the information to the department in the application, the applicant may specify the agency that has the information. If, after reasonable efforts, the department is unable to obtain the information from the other agency, the applicant shall submit the information to the department, upon its request.

(4) The equipment eligible for certification by the department under this rule includes the pipeline and its associated equipment, structures, and interconnections downstream from each meter used to measure the carbon dioxide received from each carbon dioxide source but does not include equipment downstream of the meter to the injection well field served by the pipeline.

(5) In making its certification determination, the department shall use the application materials and may also use any other credible information available to the department.

(6) The department shall revoke a certification issued under this rule, if the taxpayer no longer uses, or no longer will use, the pipeline to transport carbon dioxide to a carbon dioxide sequestration point, including a closed-loop enhanced oil recovery operation.

History: 15-24-3116, MCA; IMP, 15-6-158, 15-24-3112, MCA; NEW, 2011 MAR p. 233, Eff. 2/25/11.


MAR Notices Effective From Effective To History Notes
17-312 2/25/2011 Current History: 15-24-3116, MCA; IMP, 15-6-158, 15-24-3112, MCA; NEW, 2011 MAR p. 233, Eff. 2/25/11.
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