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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 2008.

 

SERVICE AND WORKOVER RIG TRENDED DEPRECIATION SCHEDULE

 

       

TRENDED

YEAR NEW/

 

TREND

WHOLESALE

WHOLESALE

ACQUIRED

% GOOD

FACTOR

FACTOR

% GOOD

2008

100%

1.000

80%

80%

2007

92%

1.000

80%

74%

2006

84%

1.053

80%

71%

2005

76%

1.106

80%

67%

2004

67%

1.200

80%

64%

2003

58%

1.242

80%

58%

2002

49%

1.267

80%

50%

2001

39%

1.274

80%

40%

2000

30%

1.286

80%

31%

1999

24%

1.307

80%

25%

1998 and older

20%

1.313

80%

21%

 

(6) This rule is effective for tax years beginning after December 31, 2007.

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; AMD, 2007 MAR p. 1826, Eff. 11/9/07.

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