ARM 42.25.1809. TAX RATES

(1) Table I reflects the tax rates effective on October 1, 2006, 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. (2) The rate of tax set under 82-11-131, MCA, is at the maximum allowable rate of .3 percent of value. The rate is subject to change by the Board of Oil and Gas. Table I - Effective 10/1/2006 Type of Production Working Interest Nonworking 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% (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%