ARM 42.21.140. OIL DRILLING RIGS

(1) Bids for new rigs will be solicited from manufacturers of oil drilling rigs to determine current replacement costs based on the depth rating listed below. For each depth rating listed below for oil drilling rigs, there will be two replacement cost categories. One category will represent current replacement cost of a mechanical rig and the second category will represent current replacement cost of an electric rig. Each rig as it is assessed will be placed in a value category based on its depth. (2) The department shall prepare a ten-year trended depreciation schedule for oil drilling rigs. The trended depreciation schedule shall be derived from depreciation factors published by Marshall and Swift Publication Company. The "% good" for all drill rigs less than one year old shall be 100%. The trended depreciation schedule for tax year 2010 is listed below. DRILL RIG TRENDED DEPRECIATION SCHEDULE YEAR NEW/ ACQUIRED % GOOD TREND FACTOR TRENDED % GOOD 2010 100% 1.000 100% 2009 92% 1.000 92% 2008 84% 1.041 87% 2007 76% 1.088 83% 2006 67% 1.153 77% 2005 58% 1.211 70% 2004 49% 1.314 64% 2003 35% 1.362 48% 2002 30% 1.387 42% 2001 24% 1.394 33% 2000 and older 20% 1.408 28% (3) In any year that the information required in (1) is not available for use by the department, oil drilling rigs shall be valued by using the previous year's schedule. (4) This rule is effective for tax years beginning after December 31, 2009. 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,501 ft. to 10,000 ft. 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,001 ft. to 12,500 ft. 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,501 ft. to 15,000 ft. 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,001 ft. to 20,000 ft. 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,001 ft. and over MANUFACTURER'S DEPTH RATING SERVICE RIG R.C.N WORKOVER RIG R.C.N 0 - 3,000 ft. $ $ 285,209 3,001 ft. - 5,000 ft. 432,135 5,001 ft. - 7,500 ft. 868,250 654,750 7,501 ft. - 10,000 ft. 1,167,210 998,750 10,001 ft. - 12,500 ft. 1,265,500 1,130,600 12,501 ft. - 15,000 ft. 1,720,400 1,538,500 15,001 ft. - 20,000 ft. 1,990,100 20,001 ft. and over 2,036,047 The depth capacity for drilling rigs will be based on the "Manufacturers Depth Rating." These replacement costs will then be depreciated to arrive at market value according to the schedule mentioned in (2).