(1) Bids for new rigs will be solicited from manufacturers of work-over and service rigs to determine current replacement costs based on the depth rating listed below. For each depth rating listed below of work-over and service rigs, there will be two replacement cost categories. One category will represent current replacement cost of a service rig and the second category will represent current replacement cost of a work-over rig. Each rig, as it is assessed, will be placed in one category or another based on its depth.

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DEPTH CATEGORIES

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Class	�	Depth Capacity
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1	. . . . . . . . . . . . . . . . . . . . . . .	0 to 3,000 ft.
2	. . . . . . . . . . . . . . . . . . . . . . .	3,001 ft. to 5,000 ft.
3	. . . . . . . . . . . . . . . . . . . . . . .	5,001 ft. to 8,000 ft.
4	. . . . . . . . . . . . . . . . . . . . . . .	8,001 ft. to 10,000 ft.
5	. . . . . . . . . . . . . . . . . . . . . . .	10,001 ft. to 14,000 ft.
6	. . . . . . . . . . . . . . . . . . . . . . .	14,001 ft. and over

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DEPTH CATEGORIES AND REPLACEMENT COST NEW

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MANUFACTURER'S	SERVICE	WORKOVER
DEPTH RATING	RIG R.C.N	RIG R.C.N
0 - 3,000 ft	$ 146,788	$ 186,788
3,001 ft. - 5,000 ft	187,336	227,336
5,001 ft. - 8,000 ft	245,572	305,572
8,001 ft. - 10,000 ft	293,325	393,325
10,001 ft. - 14,000 ft	322,918	472,918
14,001 ft. and over	405,426	555,426

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Pole rigs and cable tool rigs, regardless of depth, are $60,000 R.C.N. 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 work-over and service rigs. The trended depreciation schedule shall be derived from depreciation factors published in the Marshall & Swift Valuation Service Guide. The "% good" for work-over and service rigs less than one year old shall be 100 percent.

(3) In any year that the information required in (1) is not available for use by the department, work-over and service rigs shall be valued by using the schedule from the previous year.

(4) For self-propelled wheeled work-over and service rigs, an additional 80 percent wholesale factor shall be used in determining market value in conjunction with the schedules mentioned in (2).

(5) The trended depreciation schedule referred to in (2) and (4) is listed below and shall be used for tax year 2015.

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YEAR/NEW ACQUIRED	% GOOD	TREND FACTOR	WHOLESALE FACTOR	TRENDED WHOLESALE % GOOD
2015	100%	1.000	80%	80%
2014	92%	1.000	80%	74%
2013	84%	1.009	80%	68%
2012	76%	1.010	80%	61%
2011	67%	1.038	80%	56%
2010	58%	1.066	80%	49%
2009	49%	1.051	80%	41%
2008	39%	1.088	80%	34%
2007	30%	1.137	80%	27%
2006	24%	1.204	80%	23%
2005 and older	21%	1.265	80%	21%

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(6) This rule is effective for tax years beginning after December 31, 2014.