BEFORE THE BOARD OF OIL AND GAS CONSERVATION AND THE DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION
OF THE STATE OF MONTANA
In the matter of the amendment of ARM 36.22.1242 pertaining to the Board of Oil and Gas Conservation privilege and license tax
NOTICE OF PROPOSED AMENDMENT
NO PUBLIC HEARING CONTEMPLATED
To: All Concerned Persons
1. On September 25, 2020, the Board of Oil and Gas Conservation and the Department of Natural Resources and Conservation propose to amend the above-stated rule.
2. The board will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact Board of Oil and Gas Conservation no later than 5:00 p.m. on June 23, 2020, to advise us of the nature of the accommodation that you need. Please contact Jim Halvorson, Board of Oil and Gas Conservation, 2535 St. Johns Avenue, Billings, Montana, 59102; telephone (406) 656-0040; fax (406) 655-6015; TDD/Montana Relay Service (406) 444-1421; or e-mail firstname.lastname@example.org.
3. The rule as proposed to be amended provides as follows, new matter underlined, deleted matter interlined:
36.22.1242 REPORTS BY PRODUCERS – TAX REPORT – TAX RATE
(1) remains the same.
(2) The privilege and license tax on each barrel of crude petroleum and each 10,000 cubic feet of natural gas produced, saved, and marketed, or stored within the state or exported therefrom shall be
83.33 100 percent of the rate authorized in 82-11-131, MCA, (3/10 of 1%) of the market value thereof. This rule is effective on all crude petroleum and natural gas produced on and after January 1, 2020 October 1, 2020.
AUTH: 82-11-111, MCA
IMP: 82-11-123, 82-11-131, MCA
REASON: Under current forecasts for oil and gas prices and production, the proposed rate increase is necessary to provide adequate income for board operations and other activities required by statute.
4. Concerned persons may submit their data, views, or arguments concerning the proposed action in writing to: Jim Halvorson, Board of Oil and Gas Conservation and the Department of Natural Resources and Conservation, 2535 St. Johns Avenue, Billings, Montana, 59102; telephone (406) 656-0040; fax (406) 655-6015; or e-mail email@example.com, and must be received no later than 5:00 p.m., July 10, 2020.
5. If persons who are directly affected by the proposed action wish to express their data, views, or arguments orally or in writing at a public hearing, they must make written request for a hearing and submit this request along with any written comments to Jim Halvorson at the above address no later than 5:00 p.m., July 10, 2020.
6. If the agency receives requests for a public hearing on the proposed action from either 10 percent or 25, whichever is less, of the persons directly affected by the proposed action; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date. Notice of the hearing will be published in the Montana Administrative Register. Ten percent of those directly affected has been determined to be 20 persons based on the number of oil and gas producers in the state.
7. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the contact person in number 4 above or may be made by completing a request form at any rules hearing held by the department.
8. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.
9. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment of the above-referenced rule will not significantly and directly impact small businesses.
/s/ Steve Durrett ___ /s/ John E. Tubbs
Steve Durrett, Chairman John E. Tubbs
Board of Oil and Gas Director
Conservation Department of Natural Resources and
Rule Reviewer Conservation
/s/ Robert Stutz
Certified to the Secretary of State June 2, 2020.