HOME    SEARCH    ABOUT US    CONTACT US    HELP   
           
Rule: 42.25.1809 Prev     Up     Next    
Rule Title: TAX RATES
Add to My Favorites
Add to Favorites
Department: REVENUE
Chapter: NATURAL RESOURCES TAXES
Subchapter: Oil and Gas
 
Latest version of the adopted rule presented in Administrative Rules of Montana (ARM):

Printer Friendly Version

42.25.1809    TAX RATES

(1) Table I reflects the tax rates effective October 1, 2006 through September 30, 2016, as set forth in 15-36-304, MCA, and by the Montana Board of Oil and Gas Conservation by rule.

 

Table I - Effective through 9/30/2016

 

Type of Production

Working 

Interest

Nonworking 

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-199 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%

 

(2) Table II reflects the tax rates effective on October 1, 2016, as set forth in 15-36-304, MCA, and by the Montana Board of Oil and Gas Conservation in ARM 36.22.1242.

 

Table II - Effective 10/1/2016

 

Type of Production

Working

Interest

Nonworking

Interest

(a) Natural gas

 

 

(i) Primary recovery production

 

 

(A) First 12 months of production

.80%

15.10%

(B) Pre-1999 wells after first 12 months of production

15.10%

15.10%

(C) Post-1999 wells after first 12 months of production

9.30%

15.10%

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

 

 

(A) Pre-1999 wells

11.30%

15.10%

(iii) Horizontally completed well production

 

 

(A) First 18 months of qualifying production

.80%

15.10%

(B) After 18 months

9.30%

15.10%

(b) Oil

 

 

(i) Primary recovery production

 

 

(A) First 12 months of production

.80%

15.10%

(B) Pre-1999 wells after first 12 months of production

12.80%

15.10%

(C) Post-1999 wells after first 12 months of production

9.30%

15.10%

(ii) Stripper wells (averaging < 15 bbls/day)

 

 

(A) Pre-1999 and post-1999 wells first 1-10 bbls

5.80%

15.10%

(B) Pre-1999 and post-1999 over 10 bbls

9.30%

15.10%

(C) Pre-1999 and post-1999 stripper well exemption

.80%

15.10%

(D) Pre-1999 and post-1999 stripper well bonus production

6.30%

15.10%

(iii) Horizontally drilled

 

 

(A) Pre-1999 and post-1999 wells first 18 months

.80%

15.10%

(B) Pre-1999 wells after 18 months

12.80%

15.10%

(C) Post-1999 wells after 18 months

9.30%

15.10%

(iv) Incremental production

 

 

(A) New or expanded secondary recovery production

8.80%

15.10%

(B) New or expanded tertiary production

6.10%

15.10%

(v) Horizontally recompleted wells

 

 

(A) Pre-1999 and post-1999 wells first 18 months

5.80%

15.10%

(B) Pre-1999 wells after 18 months

12.80%

15.10%

(C) Post-1999 wells after 18 months

9.30%

15.10%

 

(3) Section 82-11-131, MCA, provides for a maximum allowable tax rate of .3 percent of value. The rate enacted, up to the maximum allowable, is established by and subject to change by the Montana Board of Oil and Gas Conservation by rule.

 

History: 15-36-322, MCA; IMP, 15-36-304, 82-11-131, MCA; NEW, 1996 MAR p. 2001, Eff. 7/19/96; AMD, 2000 MAR p. 1347, Eff. 5/26/00; AMD, 2001 MAR p. 2048, Eff. 10/12/01; AMD, 2005 MAR p. 2470, Eff. 12/9/05; AMD, 2013 MAR p. 180, Eff. 2/1/13; AMD, 2018 MAR p. 1170, Eff. 6/23/18.


 

 
MAR Notices Effective From Effective To History Notes
42-2-993 6/23/2018 Current History: 15-36-322, MCA; IMP, 15-36-304, 82-11-131, MCA; NEW, 1996 MAR p. 2001, Eff. 7/19/96; AMD, 2000 MAR p. 1347, Eff. 5/26/00; AMD, 2001 MAR p. 2048, Eff. 10/12/01; AMD, 2005 MAR p. 2470, Eff. 12/9/05; AMD, 2013 MAR p. 180, Eff. 2/1/13; AMD, 2018 MAR p. 1170, Eff. 6/23/18.
42-2-890 2/1/2013 6/23/2018 History: 15-36-322, MCA; IMP, 15-36-304, 82-11-131, MCA; NEW, 1996 MAR p. 2001, Eff. 7/19/96; AMD, 2000 MAR p. 1347, Eff. 5/26/00; AMD, 2001 MAR p. 2048, Eff. 10/12/01; AMD, 2005 MAR p. 2470, Eff. 12/9/05; AMD, 2013 MAR p. 180, Eff. 2/1/13.
12/9/2005 2/1/2013 History: 15-36-322, MCA; IMP, 15-36-304, 82-11-131, MCA; NEW, 1996 MAR p. 2001, Eff. 7/19/96; AMD, 2000 MAR p. 1347, Eff. 5/26/00; AMD, 2001 MAR p. 2048, Eff. 10/12/01; AMD, 2005 MAR p. 2470, Eff. 12/9/05.
Home  |   Search  |   About Us  |   Contact Us  |   Help  |   Disclaimer  |   Privacy & Security