42.25.1816    DETERMINING QUALIFYING PRODUCTION

(1) Qualifying production time period begins immediately after the last day of the month preceding the month when production first started. The qualifying production time period continues for 12 or 18 contiguous months, 12 for vertical production or 18 for horizontally completed wells.

(a) Example – A vertical oil or natural gas well first produces May 2010. The well will have a reduced tax rate as illustrated in 15-36-304, MCA for the months May 1, 2010, to April 30, 2011.

(2) The tax incentive applies to the total gross value of all oil or natural gas sold in the 12- or 18-month period. If the sales occur after the 12- or 18-month period nonqualifying production tax rates as described in 15-36-304, MCA apply.

History: 15-36-322, MCA; IMP, 15-36-304, MCA; NEW, 2010 MAR p. 2580, Eff. 10/29/10.