42.21.139 WORK-OVER AND SERVICE RIGS (1) Bids for new rigs will be solicited from manufacturers of work-over and service rigs to determine current replacement costs based on the depth rating listed below. For each depth rating listed below of work-over and service rigs, there will be two replacement cost categories. One category will represent current replacement cost of a service rig and the second category will represent current replacement cost of a work-over rig. Each rig, as it is assessed, will be placed in one category or another based on its depth.
DEPTH CATEGORIES
Class |
|
Depth Capacity |
|
|
|
1 |
. . . . . . . . . . . . . . . . . . . . . . . . . . . |
0 to 3,000 ft. |
2 |
. . . . . . . . . . . . . . . . . . . . . . . . . . . |
3,001 ft. to 5,000 ft. |
3 |
. . . . . . . . . . . . . . . . . . . . . . . . . . . |
5,001 ft. to 8,000 ft. |
4 |
. . . . . . . . . . . . . . . . . . . . . . . . . . . |
8,001 ft. to 10,000 ft. |
5 |
. . . . . . . . . . . . . . . . . . . . . . . . . . . |
10,001 ft. to 14,000 ft. |
6 |
. . . . . . . . . . . . . . . . . . . . . . . . . . . |
14,001 ft. and over |
DEPTH CATEGORIES AND REPLACEMENT COST NEW
MANUFACTURER'S
|
SERVICE
|
WORKOVER
|
DEPTH RATING
|
RIG R.C.N
|
RIG R.C.N
|
0 - 3,000 ft
|
$ 146,788
|
$ 186,788
|
3,001 ft. - 5,000 ft
|
187,336
|
227,336
|
5,001 ft. - 8,000 ft
|
245,572
|
305,572
|
8,001 ft. - 10,000 ft
|
293,325
|
393,325
|
10,001 ft. - 14,000 ft
|
322,918
|
472,918
|
14,001 ft. and over |
405,426
|
555,426
|
Pole rigs and cable tool rigs, regardless of depth, are $60,000 R.C.N. These replacement costs will then be depreciated to arrive at market value according to the schedule mentioned in (2) .
(2) The department shall prepare a ten-year trended depreciation schedule for work-over and service rigs. The trended depreciation schedule shall be derived from depreciation factors published by "Marshall and Swift Publication Company". The "% good" for work-over and service rigs less than one year old shall be 100%.
(3) In any year that the information required in (1) is not available for use by the department, work-over and service rigs shall be valued by using the schedule from the previous year.
(4) For self-propelled wheeled work-over and service rigs, an additional 80% wholesale factor shall be used in determining market value in conjunction with the schedules mentioned in (2) .
(5) The trended depreciation schedule referred to in (2) and (4) is listed below and shall be used for tax year 2007.
SERVICE AND WORKOVER RIG TRENDED DEPRECIATION SCHEDULE
|
|
|
|
TRENDED
|
YEAR NEW/
|
|
TREND
|
WHOLESALE
|
WHOLESALE
|
ACQUIRED
|
% GOOD
|
FACTOR
|
FACTOR
|
% GOOD
|
2007
|
100%
|
1.000
|
80%
|
80%
|
2006
|
92%
|
1.000
|
80%
|
74%
|
2005
|
84%
|
1.041
|
80%
|
70%
|
2004
|
76%
|
1.130
|
80%
|
69%
|
2003
|
67%
|
1.169
|
80%
|
63%
|
2002
|
58%
|
1.193
|
80%
|
55%
|
2001
|
49%
|
1.199
|
80%
|
47%
|
2000
|
39%
|
1.211
|
80%
|
38%
|
1999
|
30%
|
1.230
|
80%
|
30%
|
1998
|
24%
|
1.237
|
80%
|
24%
|
1997 and older
|
20%
|
1.249
|
80%
|
20%
|
(6) This rule is effective for tax years beginning after December 31, 2006. History: 15-1-201, MCA; IMP, 15-6-135, 15-6-138, 15-6-219, 15-24-921, 15-24-922, 15-24-925, MCA; NEW, 1984 MAR p. 2036, Eff. 12/28/84; AMD, 1986 MAR p. 2068, Eff. 12/27/86; AMD, 1988 MAR p. 747, Eff. 4/15/88; AMD, 1989 MAR p. 613, Eff. 5/12/89; AMD, 1991 MAR p. 915, Eff. 6/14/91; AMD, 1991 MAR p. 2043, Eff. 11/1/91; AMD, 1992 MAR p. 2394, Eff. 10/30/92; AMD, 1993 MAR p. 2972, Eff. 12/10/93; AMD, 1994 MAR p. 3195, Eff. 12/23/94; AMD, 1996 MAR p. 1174, Eff. 4/26/96; AMD, 1996 MAR p. 3151, Eff. 12/6/96; AMD, 1997 MAR p. 2297, Eff. 12/16/97; AMD, 1998 MAR p. 3316, Eff. 12/18/98; AMD, 1999 MAR p. 2909, Eff. 12/17/99; AMD, 2000 MAR p. 3563, Eff. 12/22/00; AMD, 2001 MAR p. 2249, Eff. 11/9/01; AMD, 2002 MAR p. 3728, Eff. 12/27/02; AMD, 2003 MAR p. 2901, Eff. 12/25/03; AMD, 2004 MAR p. 2603, Eff. 10/22/04; AMD, 2005 MAR p. 2262, Eff. 11/11/05; AMD, 2006 MAR p. 2979, Eff. 12/8/06.
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