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 in the Marshall & Swift Valuation Service Guide. The "% good" for all drill rigs less than one year old shall be 100 percent. The trended depreciation schedule for tax year 2015 is listed below. YEAR NEW/ ACQUIRED % GOOD TREND FACTOR TRENDED % GOOD 2015 100% 1.000 100% 2014 92% 1.000 92% 2013 84% 1.009 85% 2012 76% 1.010 77% 2011 67% 1.038 70% 2010 58% 1.066 62% 2009 49% 1.051 51% 2008 39% 1.088 42% 2007 30% 1.137 34% 2006 24% 1.204 29% 2005 and older 21% 1.265 27% (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, 2014. 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 ELECTRICAL MECHANICAL DEPTH RATING RIG R.C.N 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).