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42.21.140    OIL DRILLING RIGS

(1) Bids for new rigs will be solicited from manufacturers of oil drilling rigs to determine current replacement costs based on the depth rating listed below. For each depth rating listed below for oil drilling rigs, there will be two replacement cost categories. One category will represent current replacement cost of a mechanical rig and the second category will represent current replacement cost of an electric rig. Each rig as it is assessed will be placed in a value category 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
. . . . . . . . . . . . . . . . . . . . . . . . . . . 7,501 ft. to 10,000 ft.
5
. . . . . . . . . . . . . . . . . . . . . . . . . . . 10,001 ft. to 12,500 ft.
6
. . . . . . . . . . . . . . . . . . . . . . . . . . . 12,501 ft. to 15,000 ft.
7
. . . . . . . . . . . . . . . . . . . . . . . . . . . 15,001 ft. to 20,000 ft.
8
. . . . . . . . . . . . . . . . . . . . . . . . . . . 20,001 ft. and over

 

MANUFACTURER'S
SERVICE
WORKOVER
DEPTH RATING
RIG R.C.N
RIG R.C.N
0 - 3,000 ft.

$

$ 285,209
3,001 ft. - 5,000 ft.  
432,135
5,001 ft. - 7,500 ft.
868,250
654,750
7,501 ft. - 10,000 ft.
1,167,210
998,750
10,001 ft. - 12,500 ft.
1,265,500
1,130,600
12,501 ft. - 15,000 ft.
1,720,400
1,538,500
15,001 ft. - 20,000 ft.
1,990,100
 
20,001 ft. and over
2,036,047
 

 

The depth capacity for drilling rigs will be based on the "Manufacturers Depth Rating." 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 oil drilling rigs. The trended depreciation schedule shall be derived from depreciation factors published by Marshall and Swift Publication Company. The "% good" for all drill rigs less than one year old shall be 100 percent. The trended depreciation schedule for tax year 2011 is listed below.

 

DRILL RIG TRENDED DEPRECIATION SCHEDULE

 

YEAR NEW/
ACQUIRED
% GOOD
TREND
FACTOR
TRENDED
% GOOD
2011
100%
1.000
100%
2010
92%
1.000
92%
2009
84%
0.983
83%
2008
76%
1.017
77%
2007
67%
1.064
71%
2006
58%
1.126
65%
2005
49%
1.183
58%
2004
39%
1.284
50%
2003
30%
1.328
40%
2002
24%
1.355
33%
2001 and older
20%
1.363
27%

 

(3) In any year that the information required in (1) is not available for use by the department, oil drilling rigs shall be valued by using the previous year's schedule.

(4) This rule is effective for tax years beginning after December 31, 2010.

History: 15-1-201, MCA; IMP, 15-6-135, 15-6-138, 15-6-207, 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. 3653, 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; AMD, 2009 MAR p. 2497, Eff. 12/25/09; AMD, 2010 MAR p. 3022, Eff. 12/24/10.

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