(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 percent. The trended depreciation schedule for tax year 2011 is listed below.

 

DRILL RIG TRENDED DEPRECIATION SCHEDULE

 

YEAR NEW/ ACQUIRED	% GOOD	TREND FACTOR	TRENDED % GOOD
2011	100%	1.000	100%
2010	92%	1.000	92%
2009	84%	0.983	83%
2008	76%	1.017	77%
2007	67%	1.064	71%
2006	58%	1.126	65%
2005	49%	1.183	58%
2004	39%	1.284	50%
2003	30%	1.328	40%
2002	24%	1.355	33%
2001 and older	20%	1.363	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, 2010.