Administrative Rules of Montana › Department 17 - ENVIRONMENTAL QUALITY › Chapter 17.80 - AIR AND WATER QUALITY - TAX CERTIFICATION › Subchapter 17.80.2 - Tax Abatement and Classification › Rule 17.80.205 - APPLICATION REQUIREMENTS AND DECISION CRITERIA: CLOSED-LOOP ENHANCED OIL RECOVERY OPERATION EQUIPMENT

Current through Register Vol. 13, July 5, 2024
(1) A taxpayer who
				wishes to obtain a certificate of eligibility for classification of equipment
				used in a closed-loop enhanced oil recovery operation as class fifteen property
				under 15-6-158, MCA, or for abatement of
				property tax liability under
				15-24-3111, MCA, shall file an
				application on a form provided by the department pursuant to ARM
				17.80.201. The application must
				contain the following information:
(a) the
				name and address of the applicant;
(b) the name, address, telephone number, and
				e-mail address of a contact person for the applicant;
(c) a description of the equipment for which
				certification is sought;
(i) for a project
				still under construction at the end of a tax year, this would be a general
				description of the complete equipment, with a more detailed description of that
				portion for which certification is sought;
(d) a map or drawing showing the location of
				the equipment;
(e) the date
				construction of the project commenced;
(f) certification that the standard
				prevailing rate of wages for heavy construction were, or will be, paid during
				the construction phase;
(g) the
				location of each well in which carbon dioxide is injected, or is to be
				injected, as part of the closed-loop enhanced oil recovery operation;
(h) a map or drawing showing the location of
				each well and injection point at the time of the application;
(i) certification that each source of the
				carbon dioxide to be injected in the operation is, or will be, a plant or
				facility that produces or captures carbon dioxide, within the meaning of
				15-6-158(2)(g),
				MCA, and is not, or will not be, a well from which the primary product is
				carbon dioxide;
(j) a list of all
				plants or facilities that produce or capture, or will produce or capture, the
				carbon dioxide for the operation;
(k) certification that a final UIC permit has
				been issued, or will be issued, by the Montana Board of Oil and Gas
				Conservation for each well in which carbon dioxide is injected, or is to be
				injected, as part of the closed-loop enhanced oil recovery operation, including
				specification of the American Petroleum Institute number and UIC permit number
				for each well. If some or all permits have not been issued at the time of the
				application, the taxpayer shall update the certification annually, pursuant to
				ARM 17.80.225(2), by
				providing the department with the information required under this subsection
				for permits issued after the date of the application;
(l) documentation of the purity level of the
				carbon dioxide received by the operation. For facilities that have not
				commenced operation of the closed-loop enhanced oil recovery equipment at the
				time of the application, the applicant shall submit this documentation within
				60 days after commencing commercial operation; and
(m) documentation that the closed-loop
				enhanced oil recovery operation retains, or will retain, as much of the
				injected carbon dioxide as is practicable, but not less than 85% of the carbon
				dioxide injected each year. Demonstrations may include, but are not limited to,
				modeling data, monitoring data, or engineering calculations sufficient to make
				the demonstration;
(i) all demonstrations
				must be accompanied by a protocol describing how the data was obtained and
				describing all quality control and quality assurance procedures followed in
				gathering or producing the data.