ARM 42.25.1809. TAX RATES

(1) Table I reflects the tax rates effective on July 1, 2005, and includes the rates contained in 15-36-304 , MCA, and ARM 36.22.1242 (board of oil and gas) . The rate is subject to change by the board of oil and gas. (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-1999 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% Table II - Effective 7/1/2001 Working Nonworking Type of Production Interest 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-1999 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% (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 July 1, 2001, and includes the rates contained in 15-36-304 , MCA, and ARM 36.22.1242 (board of oil and gas) . The rate is subject to change by the board of oil and gas. Table III - Effective 1/1/2000 Working Nonworking Type of Production Interest Interest (a) Natural gas (i) Primary recovery production (A) First 12 months of production .8% 15.1% (B) Pre-1999 wells after first 12 months of production 15.1% 15.1% (C) Post-1999 wells after first 12 months of production 9.3% 15.1% (ii) Stripper wells (averaging < 60 MCF/day) (A) Pre-1999 wells 11.3% 15.1% (iii) Horizontally completed well production (A) First 18 months of qualifying production .8% 15.1% (B) After 18 months 9.3% 15.1% (b) Oil (i) Primary recovery production (A) First 12 months of production .8% 15.1% (B) Pre-1999 wells after first 12 months of production 12.8% 15.1% (C) Post-1999 wells after first 12 months of production 9.3% 15.1% (ii) Stripper wells (averaging < 15 bbls/day) (A) Pre-1999 and post-1999 wells first 1-10 bbls 5.8% 15.1% (B) Pre-1999 and post-1999 over 10 bbls 9.3% 15.1% (C) Pre-1999 and post-1999 stripper well exemption .8% 15.1% Table III - Effective 1/1/2000 Working Nonworking Type of Production Interest Interest (iii) Horizontally drilled (A) Pre-1999 and post-1999 wells first 18 months .8% 15.1% (B) Pre-1999 wells after 18 months 12.8% 15.1% (C) Post-1999 wells after 18 months 9.3% 15.1% (iv) Incremental production (A) New or expanded secondary recovery production 8.8% 15.1% (B) New or expanded tertiary production 6.1% 15.1% (v) Horizontally recompleted wells (A) Pre-1999 and post-1999 wells first 18 months 5.8% 15.1% (B) Pre-1999 wells after 18 months 12.8% 15.1% (C) Post-1999 wells after 18 months 9.3% 15.1% (3) Table III reflects the tax rates effective on January 1, 2000, and includes the rates contained in 15-36-304 , MCA, and ARM 36.22.1242 (board of oil and gas) . The rate set under 82-11-131 , MCA, is at the maximum allowable rate of .3% of value. The rate is subject to change by the board of oil and gas. Table IV - Effective 7/1/1999 through 12/31/1999 Working Nonworking Type of Production Interest Interest (a) Natural gas (i) Pre-1985 wells 18.85% 15.1% (ii) Post-1985 wells (qualifying production) (A) First 12 months .8% 15.1% (B) After first 12 months, but less than first 25 months 12.8% 15.1% (C) After first 24 months 15.45% 15.1% (iii) Stripper wells (averaging < 60 MCF/day) (A) Pre-1985 and post-1985 wells 11.3% 15.1% (iv) Post 1999 wells (A) First 12 months of qualifying production .8% 15.1% (B) After 12 months 9.3% 15.1% (v) Horizontally completed well production (A) First 18 months of qualifying production .8% 15.1% (B) After 18 months 9.3% 15.1% (b) Oil (i) Primary recovery production (A) Pre-1985 wells 14.2% 17.2% (ii) Stripper wells (averaging < 15 bbls/day) (A) Pre-1985 and post-1985 wells first 1-10 bbls 5.8% 15.1% (B) Pre-1985 and post-1985 over 10 bbls 9.3% 15.1% (C) Pre-1985 and post-1985 stripper well exemption .8% 15.1% (iii) Horizontally drilled (A) Post-1985 wells (I) First 18 months .8% 15.1% (II) After 18 months, but less than first 25 months 7.8% 12.8% (III) After 24 months 12.8% 12.8% (B) Post-1999 wells (I) First 18 months .8% 15.1% (II) After 18 months 9.3% 15.1% Table IV - Effective 7/1/1999 through 12/31/1999 Working Nonworking Type of Production Interest Interest (iv) Incremental production (A) New or expanded secondary recovery production (I) Pre-1985 wells 8.8% 16.3% (II) Post-1985 wells 8.8% 10.8% (III) Post-1999 wells 8.8% 15.1% (B) New or expanded tertiary production (I) Pre-1985 wells 6.1% 15.3% (II) Post-1985 wells 6.1% 9.8% (III) Post-1999 wells 6.1% 15.1% (v) Horizontally recompleted wells (A) First 18 months of qualifying production (I) Post-1985 wells 5.8% 5.8% (II) Post-1999 wells 5.8% 15.1% (B) After 18 months (I) Post-1985 wells 12.8% 12.8% (II) Post-1999 wells 9.3% 15.1% (4) Table IV reflects the tax rates effective on July 1, 1999 through December 31, 1999, and includes the rates contained in 15-36-304 , MCA, and ARM 36.22.1242 (board of oil and gas) . The rate of tax set under 82-11-131 , MCA, is at the maximum allowable rate of .3% of value. The rate is subject to change by the board of oil and gas. Table I - Effective 7/1/2005 Working Nonworking Type of Production Interest Interest