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. 18, September 20, 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
