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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

. . . . . . . . . . . . . . . . . . . . . . . . . .

8,001 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

ELECTRICAL

MECHANICAL

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 provided 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 in the Marshall & Swift Valuation Service Guide. The "% good" for all drill rigs less than one year old shall be 100 percent. The trended depreciation schedule for tax year 2017 is listed below.

 

YEAR NEW/

ACQUIRED

% GOOD

TREND

FACTOR

TRENDED

% GOOD

 

 

 

 

2017

100%

1.000

100%

 

 

 

 

2016

92%

1.000

92%

 

 

 

 

2015

84%

0.988

83%

 

 

 

 

2014

76%

0.996

76%

 

 

 

 

2013

67%

1.008

68%

 

 

 

 

2012

58%

1.009

59%

 

 

 

 

2011

49%

1.037

51%

 

 

 

 

2010

39%

1.065

42%

 

 

 

 

2009

30%

1.050

31%

 

 

 

 

2008

24%

1.087

26%

 

 

 

 

2007 and older

21%

1.136

24%

 

 

 

 

 

(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, 2016.

 

History: 15-1-201, MCA; IMP, 15-6-135, 15-6-138, 15-6-219, 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; AMD, 2011 MAR p. 345, Eff. 3/11/11; AMD, 2012 MAR p. 409, Eff. 2/24/12; AMD, 2012 MAR p. 2496, Eff. 12/7/12; AMD, 2013 MAR p. 2316, Eff. 12/13/13; AMD, 2014 MAR p. 2991, Eff. 12/12/14; AMD, 2015 MAR p. 2364, Eff. 12/25/15; AMD, 2016 MAR p. 2340, Eff. 1/1/17.

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