(1) Table I reflects the tax rates effective on October 1, 2006, 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 10/1/2006

 

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-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%

 

(2) The rate of tax set under 82-11-131, MCA, is at the maximum allowable rate of .3 percent of value. The rate is subject to change by the Board of Oil and Gas.