Louisiana Administrative Code
Title 61 - REVENUE AND TAXATION
Part V - Ad Valorem Taxation
Chapter 10 - Brine Operation Properties
Section V-1007 - Valuation of Brine Operation Wells

Universal Citation: LA Admin Code V-1007

Current through Register Vol. 50, No. 3, March 20, 2024

A. The Cost-New schedules below cover only that portion of the well subject to ad valorem taxation. Functional and/or economic obsolescence shall be considered in the analysis of fair market value as substantiated by the taxpayer in writing. Consistent with Louisiana R.S. 47:1957, the assessor may request additional documentation.

B. Instructions for Use of Table 1007.B and Procedure for Arriving at Assessed Value

1. Multiply the appropriate percent good factor based on age of the well as found in Table 1007.C.

2. Use cost-new to assess all active wells.

3. For wells recompleted, use new long-string casing depth to determine fair market value.

4. Adjustments for Allowance of Economic Obsolescence
a. All active service wells (i.e. salt water disposal, water source, etc.) shall be allowed a 40 percent reduction.

b. All inactive (shut-in) wells shall be allowed a 90 percent reduction.

c. Deduct any additional obsolescence that has been appropriately documented by the taxpayer, as warranted, to reflect fair market value.

d. Sales, properly documented, should be considered by the assessor as fair market value, provided the sale meets all tests relative to it being a valid sale.

5. Multiply depth of well by appropriate 15 percent of Cost-New amount as indicated in Table 1007.B.

6. Brine Operation Wells: All Regions-Louisiana

Table 1007.B

Brine Operation Wells All Regions-Louisiana

Producing Depths

Cost-New by depth, per foot for Brine Operation Wells

Cost @ 100%

15% Assessed

0 - 1,249 ft.

S 163.31

$ 24.50

1,250 - 2,499 ft.

$ 120.98

$ 18.15

2,500 - 3,749 ft.

$ 118.13

$ 17.72

3,750 - 4,999 ft.

$ 104.13

$ 15.62

5,000 - 7,499 ft.

$ 142.25

$ 21.34

7,500 - 9,999 ft.

$ 194.06

$ 29.11

10,000 - 12,499 ft.

$ 264.61

$ 39.69

12,500 - 14,999 ft.

$ 347.13

$ 52.07

15,000 - 17,499 ft.

$ 562.28

$ 84.34

17,500 - 19,999 ft.

$ 686.51

$ 102.98

20,000 Deeper ft.

$ 366.58

$ 54.99

C. Serial Number to Percent Good Conversion

Table 1007.C

Serial Number to Percent Good Conversion Chart

Year

Beginning Serial Number

Ending Serial Number

20 Year Life Percent Good

2023

253984

Higher

97

2022

253176

253983

93

2021

252613

253175

90

2020

252171

252612

86

2019

251497

252170

82

2018

250707

251496

78

2017

249951

250706

74

2016

249476

249950

70

2015

248832

249475

65

2014

247423

248831

60

2013

245849

247422

55

2012

244268

245848

50

2011

242592

244267

45

2010

240636

242591

40

2009

239277

240635

35

2008

236927

239276

31

2007

234780

236926

27

2006

232639

234779

24

2005

230643

232638

22

2004

229010

230642

21

2003

Lower

229009

20 *

VAR.

900000

Higher

50

*Reflects residual or floor rate.

NOTE: For any serial number categories not listed above, use year well completed to determine appropriate percent good. If spud date is later than year indicated by serial number; or, if serial number is unknown, use spud date to determine appropriate percent good.

D. Surface Equipment

1. Listed below is the cost-new of major items potentially used in the brine operation process. Any equipment not shown shall be assessed on an individual basis.

2. All surface equipment, including other property associated or used in connection with brine operations, must be rendered in accordance with guidelines established by the Tax Commission and in accordance with requirements set forth on LAT Form 10-Personal Property Tax Report- Brine Operation Property.

3. Brine operation personal property will be assessed in 7 major categories, as follows:
a. wells;

b. operation equipment (surface equipment);

c. tanks (surface equipment);

d. lines;

e. inventories (material and supplies);

f. field improvements (docks, buildings, etc.);

g. other property (not included above).

4. The cost-new values listed below are to be adjusted to allow depreciation by use of the appropriate percent good listed in Table 1007.C. When determining the value of equipment associated with a single well, use the age of that well to determine the appropriate percent good. When determining the value of equipment used on multiple wells, the average age of the wells will determine the appropriate year to be used for this purpose.

5. Functional and/or economic obsolescence shall be considered in the analysis of fair market value as substantiated by the taxpayer in writing. Consistent with Louisiana R.S. 47:1957, the assessor may request additional documentation.

6. Sales, properly documented, should be considered by the assessor as fair market value, provided the sale meets all tests relative to it being a valid sale.

7. Surface Equipment-Property Description

Table 1007.D

Surface Equipment

Property Description

$ Cost New

Actuators-(See Metering Equipment)

Automatic Control Equipment-(See Safety Systems)

Automatic Tank Switch Unit-(See Metering Equipment)

Communication Equipment-(See Telecommunications)

Dampeners-(See Metering Equipment- "Recorders")

Engines - Unattached-(Only includes engine and skids):

420

Per Horsepower

Fire Control System-(Assessed on an individual basis)

Furniture and Fixtures-(Assessed on an individual

basis)

(Field operations only, according to location.)

Generators-Package Unit only-(No special installation)

280

Per K.W.

Manifolds-(See Metering Equipment)

Material and Supplies-Inventories-(Assessed on an individual basis)

Meter Calibrating Vessels-(See Metering Equipment)

Meter Prover Tanks-(See Metering Equipment)

Meter Runs-(See Metering Equipment)

Meter Control Stations-(not considered Communication Equipment)-(Assessed on an individual basis)

Metering Equipment

Manifolds-Automatic Operated:

53,260

High Pressure

17,560

per well

37,990

per valve

12,830

Low Pressure

8,030

per well

9,030

per valve

10,900

NOTE: Automatic Operated System includes gas hydraulic and pneumatic valve actuators, (or motorized valves), block valves, flow monitors-in addition to normal equipment found on manual operated system. NO METERING EQUIPMENT INCLUDED.

15,190

22,820

30,390

37,990

51,750

67,590

83,730

Meter Runs - piping, valves and supports-no meters:

108,810 137,130

2 In. piping and valve

167,880

3 In. piping and valve

4,660

4 In. piping and valve

5,010

6 In. piping and valve

7,030

8 In. piping and valve

8,740

10 In. piping and valve

3,230

12 In. piping and valve

420

14 In. piping and valve

16 In. piping and valve

18 In. piping and valve

20 In. piping and valve

22 In. piping and valve

24 In. piping and valve

Metering Vessels (Accumulators):

1 bbl. calibration plate (20 x 9)

5 bbl. calibration plate (24 x 10)

7.5 bbl. calibration plate (30 x 10)

10 bbl. calibration plate (36 x 10)

Recorders (Meters)-Includes both static element and tube drive pulsation dampener-also one and two pen operations.

per meter

SOLAR PANEL (also see Telecommunications)

per unit (10' x 10')

Pipe Lines - Lease Lines

Steel

23,360

2 In. nominal size-per mile

31,470

2 1/2 In. nominal size-per mile

40,150

3 and 3 1/2 In. nominal size-per mile

69,030

4, 4 1/2 and 5 In. nominal size-per mile

101,360

6 In. nominal size-per mile

12,830

Poly Pipe

17,280

2 In. nominal size-per mile

22,080

2 1/2 In. nominal size-per mile

37,920

3 In. nominal size-per mile

55,690

4 In. nominal size-per mile

6 In. nominal size-per mile

Plastic-Fiberglass

19,930

2 In. nominal size-per mile

34,120

3 In. nominal size-per mile

58,640

4 In. nominal size-per mile

86,080

6 In. nominal size-per mile

NOTE: Allow 90% obsolescence credit for lines that are inactive, idle, open on both ends and dormant, which are being carried on corporate records solely for the purpose of retaining right of ways on the land and/or due to excessive capital outlay to refurbish or remove the lines.

Pipe Stock-(Assessed on an individual basis)

Pipe Stock-Exempt-Under La. Const., Art. X, §4 (19-C)

Pumps-In Line

per horsepower rating of motor

350

Pump-Motor Unit-pump and motor only

Class I-(water flood, s/w disposal, p/l, etc.)

420

Up to 300 HP-per HP of motor

510

Class II-(high pressure injection, etc.)

301 HP and up-per HP of motor

Regenerators (Accumulator)-(See Metering Equipment)

Regulators

per unit

3,300

Skimmer Tanks-(See Flow Tanks in Tanks section)

Sump/Dump Tanks-(See Metering Equipment -"Fluid Tanks")

Tanks-No metering equipment

Per Barrel*

Flow Tanks (receiver or gunbarrel)

46.10

50 to 548 bbl. Range

35.90

average tank size-250 bbl.

30.50

Stock Tanks (lease tanks)

27.00

100 to 750 bbl. Range

26.20

average tank size-300 bbl.

24.10

Storage Tanks (Closed Top)

22.60

1,000 barrels

21.20

1,500 barrels

14.90

2,000 barrels

11.20

2,001-5,000 barrels

43.60

5,001-10,000 barrels

29.50

10,001-15,000 barrels

21.90

15,001-55,000 barrels

19.50

55,001-150,000 barrels

18.80

Internal Floating Roof

16.60

10,000 barrels

14.50

20,000 barrels

30,000 barrels

50,000 barrels

55,000 barrels

80,000 barrels

100,000 barrels

* I.E.: (tanks size bbls.) x (no. of bbls.) x (cost-new factor)

Telecommunications Equipment

Microwave System

57,340

Telephone and data transmission

4,300

Radio telephone

12,250

Supervisory controls

27,950

remote terminal unit, well

720

master station

60

towers (installed):

730

heavy duty, guyed, per foot

150

light duty, guyed, per foot

210

heavy duty, self supporting, per foot

70

light duty, self supporting, per foot

equipment building, per sq. ft.

solar panels, per sq. ft.

Utility Compressors

per horsepower-rated on motor

940

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:1837 and R.S. 47:2326.

Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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