Definitions

As used in these rules, unless the context otherwise requires: (1) “Active mineral reserves” mean those properties where actual production of the minerals being valued has occurred within one (1) year prior to the assessment date. (2) “Assessment date” is defined in T.C.A. § 67-5-504(a). (3) “Depleted mineral reserves” mean those properties with mineral reserves that have been determined to be depleted by prior extracting operations and that are not mineable and merchantable by current technology. (4) “Farm property” is defined as in T.C.A. § 67-5-501(3). (5) “Growing crops” is defined as in T.C.A. § 67-5-216(a). APPRAISAL OF PARCELS WITH MINERAL RESERVES CHAPTER 0600-11 (6) “Inactive measured mineral reserves” mean those properties that contain presently extractable and merchantable minerals that are not currently being extracted. Reliable evidence must indicate that the minerals could be extracted or used in the manufacture of other products by judicious methods under present economic, technical and legal conditions. (7) “Inactive indicated mineral reserves” mean those properties on which no mining, drilling or other reliable evidence establishes the presence of the minerals in quantities or quality suitable for immediate economic development, but reliable geological data supports the assumption of mineral reserves with potential contributory value. (8) “Industrial and commercial property” is defined as in T.C.A. § 67-5-501(4). (9) “Mineral” means any substance with economic value, whether organic or inorganic, which can be extracted from the earth, including industrial minerals but excluding products of the soil. The term mineral includes, but is not limited to, barite, bauxite, clay, coal, copper, dolomite, dimension stone, feldspar, fluorspar, gold, iron, lead, manganese, marble, natural gas, oil, perlite, phosphate, pyrites, sandstone, shale, silica, silver, strontium, tin, titanium, zinc, and zirconium. The term mineral does not include growing crops. (10) “Minerals not subject to appraisal” mean limestone, sand and gravel in accordance with T.C.A. § 67-5-601(d). (11) “Operator” means any person responsible for the day-to-day operation of a mine or oil and gas well by reason of contract, lease or operating agreement or any person owning an unleased producing mine or well operated by the owner thereof. (12) “Subclass,” “subclassified,” and “subclassification” mean the classification of real property as public utility property, industrial and commercial property, residential property or farm property as defined in T.C.A. § 67-5-501 and in accordance with T.C.A. § 67-5-801(a). (13) “Unit” means the total area incorporated in a unitization agreement providing for a consolidated development and operational plan to recover oil and/or gas from the areas incorporated within the unit.