Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.25 - NATURAL RESOURCES TAXES › Subchapter 42.25.18 - Oil and Gas › Rule 42.25.1809 - TAX RATES

Current through Register Vol. 13, July 5, 2024
(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.
AUTH:
					 15-36-322,
					 MCA; IMP:
					 15-36-304,
					 82-11-131,
					 MCA