(1) Table I reflects the tax rates effective on July 1, 2005, and includes the rates contained in 15-36-304 , MCA, and ARM 36.22.1242 (board of oil and gas) . The rate is subject to change by the board of oil and gas.

 Table I - Effective 7/1/2005

 

 

                                                                                                                  Working      Nonworking

Type of Production                                                                                  Interest         Interest

(a) Natural gas

(i) Primary recovery production

(A) First 12 months of production                                                         .76%          15.06%

(B) Pre-1999 wells after first

12 months of production                                                                         15.06%          15.06%

(C) Post-1999 wells after first

12 months of production                                                                           9.26%          15.06%

(ii) Stripper wells (averaging < 60 MCF/day)

(A) Pre-1999 wells                                                                             11.26%          15.06%

(iii) Horizontally completed well

production

(A) First 18 months of qualifying

production                                                                                                     .76%          15.06%

(B) After 18 months                                                                              9.26%          15.06%

(b) Oil

(i) Primary recovery production

(A) First 12 months of production                                                         .76%          15.06%

(B) Pre-1999 wells after first

12 months of production                                                                         12.76%          15.06%

(C) Post-1999 wells after first

12 months of production                                                                           9.26%          15.06%

(ii) Stripper wells (averaging

< 15 bbls/day)

(A) Pre-1999 and post-1999 wells

first 1-10 bbls                                                                                             5.76%          15.06%

(B) Pre-1999 and post-1999 over

10 bbls                                                                                                        9.26%          15.06%

(C) Pre-1999 and post-1999

stripper well exemption                                                                                .76%          15.06%

(D) Pre-1999 and post-1999

stripper well bonus production                                                                 6.26%          15.06%

(iii) Horizontally drilled

(A) Pre-1999 and post-1999 wells

first 18 months                                                                                             .76%          15.06%

(B) Pre-1999 wells after 18 months                                                 12.76%          15.06%

(C) Post-1999 wells after 18 months                                                 9.26%          15.06%

(iv) Incremental production

(A) New or expanded secondary

recovery production                                                                                  8.76%          15.06%

(B) New or expanded tertiary

production                                                                                                  6.06%          15.06%

(v) Horizontally recompleted wells

(A) Pre-1999 and post-1999 wells

first 18 months                                                                                            5.76%          15.06%

(B) Pre-1999 wells after 18 months                                                  12.76%          15.06%

(C) Post-1999 wells after 18 months                                                  9.26%          15.06%

 

Table II - Effective 7/1/2001

 

                                                                                                                  Working      Nonworking

Type of Production                                                                                  Interest         Interest

(a) Natural gas

(i) Primary recovery production

(A) First 12 months of production                                                        .76%          15.06%

(B) Pre-1999 wells after first

12 months of production                                                                         15.06%          15.06%

(C) Post-1999 wells after first

12 months of production                                                                           9.26%          15.06%

(ii) Stripper wells (averaging

< 60 MCF/day)

(A) Pre-1999 wells                                                                             11.26%          15.06%

(iii) Horizontally completed

well production

(A) First 18 months of qualifying

production                                                                                                     .76%          15.06%

(B) After 18 months                                                                              9.26%          15.06%

(b) Oil

(i) Primary recovery production

(A) First 12 months of production                                                          .76%          15.06%

(B) Pre-1999 wells after first

12 months of production                                                                          12.76%          15.06%

(C) Post-1999 wells after first

12 months of production                                                                           9.26%          15.06%

(ii) Stripper wells (averaging

< 15 bbls/day)

(A) Pre-1999 and post-1999 wells

first 1-10 bbls                                                                                              5.76%          15.06%

(B) Pre-1999 and post-1999 over

10 bbls                                                                                                         9.26%          15.06%

(C) Pre-1999 and post-1999

stripper well exemption                                                                                .76%          15.06%

(iii) Horizontally drilled

(A) Pre-1999 and post-1999 wells

first 18 months                                                                                               .76%          15.06%

(B) Pre-1999 wells after 18 months                                                  12.76%          15.06%

(C) Post-1999 wells after 18 months                                                  9.26%          15.06%

(iv) Incremental production

(A) New or expanded secondary

recovery production                                                                                    8.76%          15.06%

(B) New or expanded tertiary

production                                                                                                    6.06%          15.06%

(v) Horizontally recompleted wells

(A) Pre-1999 and post-1999 wells

first 18 months                                                                                             5.76%          15.06%

(B) Pre-1999 wells after 18 months                                                  12.76%          15.06%

(C) Post-1999 wells after 18 months                                                  9.26%          15.06%

(2) Table II reflects the tax rates effective on July 1, 2001, and includes the rates contained in 15-36-304 , MCA, and ARM 36.22.1242 (board of oil and gas) . The rate is subject to change by the board of oil and gas.

 

Table III - Effective 1/1/2000

 

                                                                                                                   Working      Nonworking

Type of Production                                                                                  Interest         Interest

(a) Natural gas

(i) Primary recovery production

(A) First 12 months of production                                                        .8%          15.1%

(B) Pre-1999 wells after first

12 months of production                                                                          15.1%        15.1%

(C) Post-1999 wells after first

12 months of production                                                                            9.3%         15.1%

(ii) Stripper wells (averaging

< 60 MCF/day)

(A) Pre-1999 wells                                                                             11.3%         15.1%

(iii) Horizontally completed

well production

(A) First 18 months of qualifying

production                                                                                                      .8%         15.1%

(B) After 18 months                                                                               9.3%         15.1%

(b) Oil

(i) Primary recovery production

(A) First 12 months of production                                                          .8%         15.1%

(B) Pre-1999 wells after first

12 months of production                                                                          12.8%         15.1%

(C) Post-1999 wells after first

12 months of production                                                                            9.3%         15.1%

(ii) Stripper wells (averaging

< 15 bbls/day)

(A) Pre-1999 and post-1999 wells

first 1-10 bbls                                                                                              5.8%         15.1%

(B) Pre-1999 and post-1999 over

10 bbls                                                                                                         9.3%         15.1%

(C) Pre-1999 and post-1999

stripper well exemption                                                                                .8%         15.1%

 

Table III - Effective 1/1/2000

 

                                                                                                                Working      Nonworking

Type of Production                                                                                Interest         Interest

(iii) Horizontally drilled

(A) Pre-1999 and post-1999 wells

first 18 months                                                                                             .8%        15.1%

(B) Pre-1999 wells after 18 months                                                12.8%        15.1%

(C) Post-1999 wells after 18

months                                                                                                        9.3%        15.1%

(iv) Incremental production

(A) New or expanded secondary

recovery production                                                                                   8.8%        15.1%

(B) New or expanded tertiary

production                                                                                                   6.1%        15.1%

(v) Horizontally recompleted wells

(A) Pre-1999 and post-1999 wells

first 18 months                                                                                            5.8%        15.1%

(B) Pre-1999 wells after 18 months                                                  12.8%        15.1%

(C) Post-1999 wells after 18 months                                                  9.3%        15.1%

 

(3) Table III reflects the tax rates effective on January 1, 2000, and includes the rates contained in 15-36-304 , MCA, and ARM 36.22.1242 (board of oil and gas) . The rate set under 82-11-131 , MCA, is at the maximum allowable rate of .3% of value. The rate is subject to change by the board of oil and gas.

 

Table IV - Effective 7/1/1999 through 12/31/1999

 

                                                                                                              Working      Nonworking

Type of Production                                                                              Interest         Interest

(a) Natural gas

(i) Pre-1985 wells                                                                          18.85%         15.1%

(ii) Post-1985 wells (qualifying

production)

(A) First 12 months                                                                                   .8%         15.1%

(B) After first 12 months, but less

than first 25 months                                                                                    12.8%         15.1%

(C) After first 24 months                                                                      15.45%       15.1%

(iii) Stripper wells (averaging

< 60 MCF/day)

(A) Pre-1985 and post-1985 wells                                                     11.3%         15.1%

(iv) Post 1999 wells

(A) First 12 months of qualifying

production                                                                                                       .8%          15.1%

(B) After 12 months                                                                                9.3%          15.1%

(v) Horizontally completed well

production

(A) First 18 months of qualifying

production                                                                                                       .8%          15.1%

(B) After 18 months                                                                                9.3%          15.1%

(b) Oil

(i) Primary recovery production

(A) Pre-1985 wells                                                                                14.2%         17.2%

(ii) Stripper wells (averaging

< 15 bbls/day)

(A) Pre-1985 and post-1985 wells

first 1-10 bbls                                                                                                5.8%          15.1%

(B) Pre-1985 and post-1985 over

10 bbls                                                                                                           9.3%          15.1%

(C) Pre-1985 and post-1985

stripper well exemption                                                                                  .8%          15.1%

(iii) Horizontally drilled

(A) Post-1985 wells

(I) First 18 months                                                                               .8%          15.1%

(II) After 18 months, but less

than first 25 months                                                                                     7.8%           12.8%

(III) After 24 months                                                                         12.8%          12.8%

(B) Post-1999 wells

(I) First 18 months                                                                               .8%          15.1%

(II) After 18 months                                                                            9.3%          15.1%

 

Table IV - Effective 7/1/1999 through 12/31/1999

 

                                                                                                                 Working      Nonworking

Type of Production                                                                                 Interest         Interest

(iv) Incremental production

(A) New or expanded secondary

recovery production

(I) Pre-1985 wells                                                                                8.8%          16.3%

(II) Post-1985 wells                                                                              8.8%          10.8%

(III) Post-1999 wells                                                                             8.8%          15.1%

(B) New or expanded tertiary

production

(I) Pre-1985 wells                                                                                6.1%          15.3%

(II) Post-1985 wells                                                                              6.1%            9.8%

(III) Post-1999 wells                                                                             6.1%          15.1%

(v) Horizontally recompleted wells

(A) First 18 months of qualifying

production

(I) Post-1985 wells                                                                               5.8%           5.8%

(II) Post-1999 wells                                                                              5.8%          15.1%

(B) After 18 months

(I) Post-1985 wells                                                                            12.8%          12.8%

(II) Post-1999 wells                                                                              9.3%          15.1%

 

(4) Table IV reflects the tax rates effective on July 1, 1999 through December 31, 1999, and includes the rates contained in 15-36-304 , MCA, and ARM 36.22.1242 (board of oil and gas) . The rate of tax set under 82-11-131 , MCA, is at the maximum allowable rate of .3% of value. The rate is subject to change by the board of oil and gas.