ARM 42.21.139. WORK-OVER AND SERVICE RIGS

(1) Bids for new rigs will be solicited from manufacturers of work-over and service rigs to determine current replacement costs based on the depth rating listed below. For each depth rating listed below of work-over and service rigs, there will be two replacement cost categories. One category will represent current replacement cost of a service rig and the second category will represent current replacement cost of a work-over rig. Each rig, as it is assessed, will be placed in one category or another based on its depth. DEPTH CATEGORIES Class Depth Capacity 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 to 3,000 ft. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,001 ft. to 5,000 ft. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,001 ft. to 8,000 ft. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,001 ft. to 10,000 ft. 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,001 ft. to 14,000 ft. 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,001 ft. and over (2) The department shall prepare a ten-year trended depreciation schedule for work-over and service rigs. The trended depreciation schedule shall be derived from depreciation factors published by "Marshall and Swift Publication Company". The "% good" for work-over and service rigs less than one year old shall be 100 percent. (3) In any year that the information required in (1) is not available for use by the department, work-over and service rigs shall be valued by using the schedule from the previous year. (4) For self-propelled wheeled work-over and service rigs, an additional 80 percent wholesale factor shall be used in determining market value in conjunction with the schedules mentioned in (2). (5) The trended depreciation schedule referred to in (2) and (4) is listed below and shall be used for tax year 2012. SERVICE AND WORKOVER RIG TRENDED DEPRECIATION SCHEDULE YEAR/NEW ACQUIRED % GOOD TREND FACTOR WHOLESALE FACTOR TRENDED WHOLESALE % GOOD 2012 100% 1.000 80% 80% 2011 92% 1.000 80% 74% 2010 84% 1.021 80% 69% 2009 76% 1.006 80% 61% 2008 67% 1.042 80% 56% 2007 58% 1.089 80% 51% 2006 49% 1.153 80% 45% 2005 39% 1.211 80% 38% 2004 30% 1.314 80% 32% 2003 24% 1.360 80% 26% 2002 and older 20% 1.387 80% 22% (6) This rule is effective for tax years beginning after December 31, 2011. DEPTH CATEGORIES AND REPLACEMENT COST NEW MANUFACTURER'S DEPTH RATING SERVICE RIG R.C.N WORKOVER RIG R.C.N 0 - 3,000 ft $ 146,788 $ 186,788 3,001 ft. - 5,000 ft 187,336 227,336 5,001 ft. - 8,000 ft 245,572 305,572 8,001 ft. - 10,000 ft 293,325 393,325 10,001 ft. - 14,000 ft 322,918 472,918 14,001 ft. and over 405,426 555,426 Pole rigs and cable tool rigs, regardless of depth, are $60,000 R.C.N. These replacement costs will then be depreciated to arrive at market value according to the schedule mentioned in (2).