Montana Administrative Code

42.25.1018 NECESSITY OF PROOF (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-23-108, MCA Implementing statute(s): Sec. 15-23-602 and 15-23-603, MCA History: NEW, 1988 MAR p. 980, Eff. 5/27/88; REP, 1996 MAR p. 2001, Eff. 7/19/96.

42.25.102 AVERAGE PRICE QUOTATIONS The average price during the calendar quarter referred to in 15-37-102 MCA, is a weighted average as opposed to an arithmetic average of daily prices for each day of the quarter. The quarterly gross value will be determined by multiplying the qu…

42.25.1021 NEW PRODUCTION REPORTING REQUIREMENT (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-23-108, MCA Implementing statute(s): Sec. 15-23-602, MCA History: NEW, 1986 MAR p. 817, Eff. 5/16/86; AMD, 1988 MAR p. 980, Eff. 5/27/88; REP, 1988 MAR p. 2226, Eff. 10/14/88.…

42.25.1022 NET PROCEEDS COMPUTATION - QUARTERLY FILINGS (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-23-108, MCA Implementing statute(s): 15-23-603, MCA History: NEW, 1986 MAR p. 817, Eff. 5/16/86; AMD, 1988 MAR p. 980, Eff. 5/27/88; REP, 1988 MAR p. 2226, Eff. 10/14/88.…

42.25.1023 NEW PRODUCTION EXEMPTION (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-23-108, MCA Implementing statute(s): Sec. 15-23-601, MCA History: NEW, 1986 MAR p. 817, Eff. 5/16/86; AMD, 1988 MAR p. 980, Eff. 5/27/88; REP, 1988 MAR p. 2226, Eff. 10/14/88.

42.25.1024 UNITIZED LEASES - NEW PRODUCTION DETERMINATION (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-23-108, MCA Implementing statute(s): Sec. 15-23-601, MCA History: NEW, 1986 MAR p. 817, Eff. 5/16/86; REP, 1988 MAR p. 980, Eff. 5/27/88.

42.25.1025 PRODUCTION FROM NEW FORMATION OF CURRENTLY PRODUCING LEASE (Is Hereby Repealed.) I Authorizing statute(s): Sec. 15-23-108 MCA Implementing statute(s): ec. 15-23-601 MCA History: NEW 1986 MAR p. 817, Eff. 5/16/86; REP, 1988 MAR p. 980, Eff. 5/27/88.

42.25.1026 CHANGES IN LEASES (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-23-108, MCA Implementing statute(s): Sec. 15-23-601, MCA History: NEW, 1986 MAR p. 817, Eff. 5/16/86; REP, 1988 MAR p. 980, Eff. 5/27/88.

42.25.1027 DECLARATORY RULING PROCEDURE (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-23-108, MCA Implementing statute(s): Sec. 15-23-602 and 15-23-603, MCA History: NEW, 1988 MAR p. 980, Eff. 5/27/88; REP, 1996 MAR p. 2001, Eff. 7/19/96.

42.25.1028 HORIZONTALLY COMPLETED OR RECOMPLETED WELLS (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-6-208, 15-23-601, 15-23-602, 15-23-603, 15-23-607, 15-23-612, 15-36-101, MCA History: NEW, 1994 MAR p. 2354, Eff. 8/12/94; REP,…

42.25.1029 QUALIFICATION OF NEW OR EXPANDED RECOVERY PROJECTS (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-23-601, 15-23-602, 15-23-603, 15-23-607, 15-23-612, 15-36-101, MCA History: NEW, 1994 MAR p. 2354, Eff. 8/12/94; REP, 19…

42.25.103 MARKET VALUE The market value for metals produced shall be the price quoted by an established authority or market report at the time the quantity of metals is determinable. No deductions from this price will be allowed. Market value for purposes of this tax is not depen…

42.25.1030 ALLOCATION OF INCREMENTAL PRODUCTION (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201 and 15-23-614, MCA Implementing statute(s): Sec. 15-23-601, 15-23-602, 15-23-603, 15-23-607, 15-23-612, and 15-36-101, MCA History: NEW, 1994 MAR p. 2354, Eff. 8/12/94; REP…

42.25.104 TAXABLE QUANTITY For purposes of the metalliferous mines license tax all merchantable metals produced during the calendar quarter are reportable and subject to tax. The taxable quantities will normally be determined by the settlement assay agreed to by both the producer…

42.25.1101 DEFINITIONS The following definitions apply to terms used in this sub-chapter: "After crushing" refers to after all crushing but before grinding. "Improvements and repairs" are defined as buildings and improvements to the land located at the mine site. "Mine" or "minin…

42.25.1102 NET PROCEEDS TAX RETURN A return and statement for the assessment of net proceeds must be on the form prescribed by the department and must contain the following detailed information: name and address of the owner, lessee, or operator of the mining operation; name and …

42.25.1103 VALUATION The department shall calculate and compute from the returns the gross product yielded from the mine and its gross value for the year covered by the return. The department shall also calculate and compute the net proceeds yielded to the mine operator. The net …

42.25.1104 MINING VERSUS NON-MINING PROCESSES The gross value of minerals subject to tax will be determined at the point where mining processes end and manufacturing or non-mining processes begin. In general, mining includes overburden removal, blasting, loading, transportation b…

42.25.1105 COMPUTATION OF GROSS VALUE Gross value for purposes of the mines net proceeds will be determined at the point where mining processes end and manufacturing or non-mining processes begin as discussed in ARM 42.25.1104. Listed in the order in which they are to be consider…

42.25.1111 TREATMENT OF ROYALTIES All royalties (including those considered to be nontaxable) may be deducted in computing net proceeds as provided under ARM 42.25.1102 and 42.25.1103. Each royalty interest shall be assessed at its full cash value in the same manner as net procee…

42.25.1112 EXPENSES RELATED TO MACHINERY All expen-ditures for machinery may be deducted in computing net proceeds as provided under ARM 42.25.1102 and 42.25.1103. Machinery shall include all that is used in: the construction; sinking, or running of shafts, tunnels, drifts; or ot…

42.25.1113 LABOR COSTS Labor expenses will include amounts paid to employees, up to and including, mine and mill foremen and superintendents. No deduction will be allowed for any person or officer not actually engaged in the mining or milling operations. Labor expenses will be de…

42.25.1114 COSTS OF IMPROVEMENTS AND REPAIRS All monies expended for improvements and repairs necessary in and about the working of the mine shall be allowed as a deduction at the rate of 10% per annum for a period of 10 consecutive years. The period shall begin with the year of …

42.25.1115 COSTS OF MILLING, SMELTER, AND REDUCTION WORKS All monies expended for costs of repairs and replacements of the milling and reduction works used in connection with the mine may be deducted in computing net proceeds as provided under ARM 42.25.1102 and 42.25.1103. There…

42.25.1116 TRANSPORTATION EXPENSES Cost of transporting crude ore or deposit to mills or reduction works may be deducted in computing net proceeds as provided under ARM 42.25.1102 and 42.25.1103. Included in these amounts shall be costs actually expended for hauling, freight char…

42.25.1117 MARKETING, ADMINISTRATIVE, AND OTHER OPERATIONAL COSTS All expenses for supplies may be deducted in computing net proceeds as provided under ARM 42.25.1102 and 42.25.1103. Actual marketing costs directly related to the sale of mineral products processed up to the point…

42.25.1118 GENERAL TREATMENT OF DEDUCTIONS Mines Net Proceeds, Title 15, chapter 23, part 5, MCA, as amended, provides for the ad valorem taxation of minerals as they are extracted from the ground and is intended to provide a tax in lieu of a property tax on such minerals.To dete…

42.25.1119 SPECIAL DEDUCTIONS Fire, boiler, machinery, and public liability insurance will be allowed as a deduction to the extent that it is insurance for equipment and buildings in the mine, and equipment and buildings in the reduction works, to the extent the insurance for the…

42.25.1201 DEFINITIONS (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): 15-36-121, MCA History: TEMP, NEW, 1987 MAR p. 1647, Eff. 9/25/87; AMD, 1994 MAR p. 2354, Eff. 8/12/94; REP, 1996 MAR p. 2001, Eff. 7/19/96.

42.25.1202 TREATMENT OF GOVERNMENTAL ROYALTIES (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): 15-36-101, MCA History: TEMP, NEW, 1987 MAR p. 1647, Eff. 9/25/87; REP, 1996 MAR p. 2001, Eff. 7/19/96.

42.25.1203 REPORTING REQUIREMENT FOR NEW WELLS (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-23-601 and 15-36-121, MCA History: TEMP, NEW, 1987 MAR p. 1647, Eff. 9/25/87; REP, 1994 MAR p. 2354, Eff. 8/12/94.

42.25.1204 NEW PRODUCTION TERMINATION (Is Hereby Re-pealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-36-121, MCA History: TEMP, NEW, 1987 MAR p. 1647, Eff. 9/25/87; REP, 1994 MAR p. 2354, Eff. 8/12/94.

42.25.1205 STRIPPER TERMINATION (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-36-121, MCA History: TEMP, NEW, 1987 MAR p. 1647, Eff. 9/25/87; REP, 1994 MAR p. 2354, Eff. 8/12/94.

42.25.1206 AVERAGE DAILY WELL PRODUCTION CALCULATION (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-36-121, MCA History: TEMP, NEW, 1987 MAR p. 1647, Eff. 9/25/87; AMD, 1994 MAR p. 2354, Eff. 8/12/94; REP, 1996 MAR p. 2001, Eff. …

42.25.1207 STRIPPER EXEMPTION IN EXCESS OF ACTUAL PRODUCTION (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-36-121, MCA History: TEMP, NEW, 1987 MAR p. 1650, Eff. 9/25/87; AMD, 1994 MAR p. 2354, Eff. 8/12/94; REP, 1996 MAR p. 200…

42.25.1208 HORIZONTALLY COMPLETED OR RECOMPLETED WELLS (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-6-208, 15-23-601, 15-23-602, 15-23-603, 15-23-607, 15-23-612, and 15-36-101, MCA History: NEW, 1994 MAR p. 2354, Eff. 8/12/94; …

42.25.1209 QUALIFICATION OF NEW OR EXPANDED RECOVERY PROJECTS (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-23-601, 15-23-602, 15-23-603, 15-23-607, 15-23-612, 15-36-101, MCA History: NEW, 1994 MAR p. 2354, Eff. 8/12/94; REP, 19…

42.25.1210 ALLOCATION OF INCREMENTAL PRODUCTION (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201 and 15-23-614, MCA Implementing statute(s): Sec. 15-23-601, 15-23-602, 15-23-603, 15-23-607, 15-23-612, and 1536-101, MCA History: NEW, 1994 MAR p. 2354, Eff. 8/12/94; REP,…

42.25.1301 TERTIARY PROJECT - APPROVAL (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-36-101, MCA History: NEW, 1987 MAR p. 2091, Eff. 11/13/87; REP, 1996 MAR p. 2001, Eff. 7/19/96.

42.25.1302 QUALIFICATION HEARING (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-36-101, MCA History: NEW, 1987 MAR p. 2091, Eff. 11/13/87; REP, 1996 MAR p. 2001, Eff. 7/19/96.

42.25.1303 DEPARTMENT PROCEDURES FOLLOWING THE HEARING (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-36-101, MCA History: NEW, 1987 MAR p. 2091, Eff. 11/13/87; REP, 1996 MAR p. 2001, Eff. 7/19/96.

42.25.1304 APPROVAL REQUIRED FOR CHANGES IN TERTIARY PROJECT (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-36-101, MCA History: NEW, 1987 MAR p. 2091, Eff. 11/13/87; REP, 1996 MAR p. 2001, Eff. 7/19/96.

42.25.1305 ELIGIBILITY OF PRIOR TERTIARY PROJECTS (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-36-101, MCA History: NEW, 1987 MAR p. 2091, Eff. 11/13/87; REP, 1996 MAR p. 2001, Eff. 7/19/96.

42.25.1306 TERTIARY PROJECT - BYPASS SECONDARY RECOVERY (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-31-101, MCA History: NEW, 1987 MAR p. 2091, Eff. 11/13/87; REP, 1996 MAR p. 2001, Eff. 7/19/96.

42.25.1307 OIL PRODUCTION - TAX COMPUTATION (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-36-101, MCA History: NEW, 1987 MAR p. 2091, Eff. 11/13/87; REP, 1996 MAR p. 2001, Eff. 7/19/96.

42.25.1308 DEFINITIONS (IS Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-36-101, MCA History: NEW, 1987 MAR p. 2091, Eff. 11/13/87; REP, 1996 MAR p. 2001, Eff. 7/19/96.

42.25.1309 TERTIARY PROJECT - INCREMENTAL PRODUCTION DETERMINATION (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-33-101, MCA History: NEW, 1987 MAR p. 2091, Eff. 11/13/87; REP, 1996 MAR p. 2001, Eff. 7/19/96.

42.25.1310 ABSENCE OF ADEQUATE DATA IS BASIS FOR DISAPPROVAL (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-36-101, MCA History: NEW, 1987 MAR p. 2091, Eff. 11/13/87; REP, 1996 MAR p. 2001, Eff. 7/19/96.

42.25.1401 SEMI-ANNUAL DISTRIBUTION TO THE COUNTIES-LOCAL GOVERNMENT SEVERANCE TAX (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-36-112, MCA History: NEW, 1990 MAR p. 2043, Eff. 11/16/90; REP, 1996 MAR p. 2001, Eff. 7/19/96.

42.25.1402 REVISED NET PROCEEDS (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, MCA Implementing statute(s): Sec. 15-36-112, MCA History: NEW, 1990 MAR p. 2043, Eff. 11/16/90; REP, 1996 MAR p. 2001, Eff. 7/19/96.