LAC 61:V.1007. Valuation of Brine Operation Wells

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 1007.C 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.D. 2. Cost-New tables. a. Use Table 1007.B to assess all service wells based on producing depth. b. Use Table 1007.C to assess all operation wells based on long-string casing diameter size. 3. Recompleted Wells a. For service wells recompleted, use new long-string casing depth to determine Cost-New amount. b. For operation wells recompleted, use new long-string casing diameter size to determine Cost-New amount. 4. Adjustments for Allowance of Economic Obsolescence a. All inactive (shut-in) wells shall be allowed a 90 percent reduction. b. Deduct any additional obsolescence that has been appropriately documented by the taxpayer, as warranted, to reflect fair market value. c. 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/Table 1007.C. 6. Brine Service Wells: All Regions—Louisiana Table 1007.B Brine Service Wells All Regions—Louisiana Producing Depths | Cost—New by depth, per foot for Brine Service 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. Brine Operation Wells: All Regions—Louisiana Table 1007.C Brine Operation Wells All Regions—Louisiana Long-String Casing Diameter Size | Cost—New $ per foot for Brine Operation Wells Inches | Cost @ 100% | 15% Assessed 4 | $ 722.31 | $ 108.35 5 | $ 868.80 | $ 130.32 6 | $ 1,013.49 | $ 152.02 7 | $ 1,157.10 | $ 173.56 8 | $ 1,300.06 | $ 195.01 9 | $ 1,442.67 | $ 216.40 10 | $ 1,585.11 | $ 237.77 11 | $ 1,727.53 | $ 259.13 12 | $ 1,870.03 | $ 280.50 13 | $ 2,012.68 | $ 301.90 14 | $ 2,155.54 | $ 323.33 15 | $ 2,298.65 | $ 344.80 16 | $ 2,442.05 | $ 366.31 17 | $ 2,585.75 | $ 387.86 18 | $ 2,729.78 | $ 409.47 19 | $ 2,874.15 | $ 431.12 20 | $ 3,018.88 | $ 452.83 21 | $ 3,163.97 | $ 474.59 22 | $ 3,309.42 | $ 496.41 23 | $ 3,455.25 | $ 518.29 24 | $ 3,601.46 | $ 540.22 25 | $ 3,748.04 | $ 562.21 26 | $ 3,895.00 | $ 584.25 27 | $ 4,042.34 | $ 606.35 28 | $ 4,190.06 | $ 628.51 29 | $ 4,338.16 | $ 650.72 30 | $ 4,486.64 | $ 673.00 31 | $ 4,635.49 | $ 695.32 32 | $ 4,784.71 | $ 717.71 33 | $ 4,934.30 | $ 740.15 34 | $ 5,084.27 | $ 762.64 35 | $ 5,234.60 | $ 785.19 36 | $ 5,385.29 | $ 807.79 37 | $ 5,536.34 | $ 830.45 38 | $ 5,687.75 | $ 853.16 39 | $ 5,839.52 | $ 875.93 40 | $ 5,991.64 | $ 898.75 D. Serial Number to Percent Good Conversion Table 1007.D Serial Number to Percent Good Conversion Chart Year | Beginning Serial Number | Ending Serial Number | 20 Year Life Percent Good 2025 | 254960 | Higher | 97 2024 | 254511 | 254959 | 93 2023 | 253984 | 254510 | 90 2022 | 253176 | 253983 | 86 2021 | 252613 | 253175 | 82 2020 | 252171 | 252612 | 78 2019 | 251497 | 252170 | 74 2018 | 250707 | 251496 | 70 2017 | 249951 | 250706 | 65 2016 | 249476 | 249950 | 60 2015 | 248832 | 249475 | 55 2014 | 247423 | 248831 | 50 2013 | 245849 | 247422 | 45 2012 | 244268 | 245848 | 40 2011 | 242592 | 244267 | 35 2010 | 240636 | 242591 | 31 2009 | 239277 | 240635 | 27 2008 | 236927 | 239276 | 24 2007 | 234780 | 236926 | 22 2006 | 232639 | 234779 | 21 2005 | Lower | 232638 | 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. E. 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.E 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): Per Horsepower | 440 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) Per K.W. | 300 Manifolds—(See Metering Equipment) Material snd 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: High Pressure per well per valve Low Pressure per well per valve 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. Meter Runs - piping, valves and supports—no meters: 2 In. piping and valve 3 In. piping and valve 4 In. piping and valve 6 In. piping and valve 8 In. piping and valve 10 In. piping and valve 12 In. piping and valve 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') | 56,020 18,470 39,960 13,490 8,440 9,500 11,470 15,980 24,000 31,960 39,960 54,420 71,090 88,060 114,430 144,220 176,570 4,900 5,270 7,390 9,190 3,400 440 Pipe Lines - Lease Lines Steel 2 In. nominal size—per mile 2 ½ In. nominal size—per mile 3 and 3 ½ In. nominal size—per mile 4, 4 ½ and 5 In. nominal size—per mile 6 In. nominal size—per mile Poly Pipe 2 In. nominal size—per mile 2 ½ In. nominal size—per mile 3 In. nominal size—per mile 4 In. nominal size—per mile 6 In. nominal size—per mile | 24,570 33,090 42,220 72,600 106,600 13,490 18,180 23,220 39,880 58,570 Pipe Lines—Lease Lines (Cont’d) Plastic—Fiberglass 2 In. nominal size—per mile 3 In. nominal size—per mile 4 In. nominal size—per mile 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. | 20,960 35,880 61,670 90,530 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 | 370 Pump—Motor Unit—pump and motor only Class I—(water flood, s/w disposal, p/l, etc.) Up to 300 HP—per HP of motor Class II—(high pressure injection, etc.) 301 HP and up—per HP of motor | 440 540 Regenerators (Accumulator)—(See Metering Equipment) Regulators per unit | 3,470 Skimmer Tanks—(See Flow Tanks in Tanks section) Sump/Dump Tanks—(See Metering Equipment -"Fluid Tanks") Tanks—No metering equipment Flow Tanks (receiver or gunbarrel) 50 to 548 bbl. Range average tank size—250 bbl. Stock Tanks (lease tanks) 100 to 750 bbl. Range average tank size—300 bbl. Storage Tanks (Closed Top) 1,000 barrels 1,500 barrels 2,000 barrels 2,001—5,000 barrels 5,001—10,000 barrels 10,001—15,000 barrels 15,001—55,000 barrels 55,001—150,000 barrels Internal Floating Roof 10,000 barrels 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) | Per Barrel* 48.50 37.80 32.10 28.40 27.60 25.30 23.80 22.30 15.60 11.70 45.80 31.00 23.10 20.50 19.80 17.50 15.20 Telecommunications Equipment Microwave System Telephone and data transmission Radio telephone Supervisory controls remote terminal unit, well master station towers (installed): heavy duty, guyed, per foot light duty, guyed, per foot heavy duty, self supporting, per foot light duty, self supporting, per foot equipment building, per sq. ft. solar panels, per sq. ft. | 60,310 4,520 12,890 29,400 760 60 770 150 220 70 Utility Compressors per horsepower—rated on motor | 990