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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 2009.

 

SERVICE AND WORKOVER RIG TRENDED DEPRECIATION SCHEDULE
 
 
 
 
 
 
 
 
 
TRENDED
YEAR NEW/
 
TREND
WHOLESALE
WHOLESALE
ACQUIRED
% GOOD
FACTOR
FACTOR
% GOOD
2009
100%
1.000
80%
80%
2008
92%
1.000
80%
74%
2007
84%
1.033
80%
69%
2006
76%
1.094
80%
67%
2005
67%
1.149
80%
62%
2004
58%
1.247
80%
58%
2003
49%
1.291
80%
51%
2002
39%
1.317
80%
41%
2001
30%
1.324
80%
32%
2000
24%
1.336
80%
26%
1999 and older
20%
1.358
80%
22%

 

(6) This rule is effective for tax years beginning after December 31, 2008.

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; AMD, 2008 MAR p. 2561, Eff. 11/27/08.

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