(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.

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	SERVICE	WORKOVER
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).

(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 2009 is listed below. 

DRILL RIG TRENDED DEPRECIATION SCHEDULE

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2009	100%	1.000	100%
2008	92%	1.000	92%
2007	84%	1.033	87%
2006	76%	1.094	83%
2005	67%	1.149	77%
2004	58%	1.247	72%
2003	49%	1.291	63%
2002	35%	1.317	46%
2001	30%	1.324	40%
2000	24%	1.336	32%

 

1999 and older

20%

1.358

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, 2008.