La. Admin. Code tit. 61 § V-1007

Current through Register Vol. 50, No. 11, November 20, 2024

Section V-1007 - Valuation of Brine Operation Wells

A. The Cost-New schedules below cover only that portion of the well subject to ad valorem taxation. Functional and/or economic obsolescence shall be considered in the analysis of fair market value as substantiated by the taxpayer in writing. Consistent with Louisiana R.S. 47:1957, the assessor may request additional documentation.

B. Instructions for Use of Table 1007.B and Procedure for Arriving at Assessed Value

1. Multiply the appropriate percent good factor based on age of the well as found in Table 1007.C.

2. Use cost-new to assess all active wells.

3. For wells recompleted, use new long-string casing depth to determine fair market value.

4. Adjustments for Allowance of Economic Obsolescence

a. All active service wells (i.e. salt water disposal, water source, etc.) shall be allowed a 40 percent reduction.

b. All inactive (shut-in) wells shall be allowed a 90 percent reduction.

c. Deduct any additional obsolescence that has been appropriately documented by the taxpayer, as warranted, to reflect fair market value.

d. Sales, properly documented, should be considered by the assessor as fair market value, provided the sale meets all tests relative to it being a valid sale.

5. Multiply depth of well by appropriate 15 percent of Cost-New amount as indicated in Table 1007.B.

6. Brine Operation Wells: All Regions-Louisiana

Table 1007.B Brine Operation Wells All Regions-Louisiana
Producing Depths	Cost-New by depth, per foot for Brine Operation Wells
	Cost @ 100%	15% Assessed
0 - 1,249 ft.	S 163.31	$ 24.50
1,250 - 2,499 ft.	$ 120.98	$ 18.15
2,500 - 3,749 ft.	$ 118.13	$ 17.72
3,750 - 4,999 ft.	$ 104.13	$ 15.62
5,000 - 7,499 ft.	$ 142.25	$ 21.34
7,500 - 9,999 ft.	$ 194.06	$ 29.11
10,000 - 12,499 ft.	$ 264.61	$ 39.69
12,500 - 14,999 ft.	$ 347.13	$ 52.07
15,000 - 17,499 ft.	$ 562.28	$ 84.34
17,500 - 19,999 ft.	$ 686.51	$ 102.98
20,000 Deeper ft.	$ 366.58	$ 54.99

C. Serial Number to Percent Good Conversion

Table 1007.C Serial Number to Percent Good Conversion Chart
Year	Beginning Serial Number	Ending Serial Number	20 Year Life Percent Good
2023	253984	Higher	97
2022	253176	253983	93
2021	252613	253175	90
2020	252171	252612	86
2019	251497	252170	82
2018	250707	251496	78
2017	249951	250706	74
2016	249476	249950	70
2015	248832	249475	65
2014	247423	248831	60
2013	245849	247422	55
2012	244268	245848	50
2011	242592	244267	45
2010	240636	242591	40
2009	239277	240635	35
2008	236927	239276	31
2007	234780	236926	27
2006	232639	234779	24
2005	230643	232638	22
2004	229010	230642	21
2003	Lower	229009	20 *
VAR.	900000	Higher	50

*Reflects residual or floor rate.

NOTE: For any serial number categories not listed above, use year well completed to determine appropriate percent good. If spud date is later than year indicated by serial number; or, if serial number is unknown, use spud date to determine appropriate percent good.

D. Surface Equipment

1. Listed below is the cost-new of major items potentially used in the brine operation process. Any equipment not shown shall be assessed on an individual basis.

2. All surface equipment, including other property associated or used in connection with brine operations, must be rendered in accordance with guidelines established by the Tax Commission and in accordance with requirements set forth on LAT Form 10-Personal Property Tax Report- Brine Operation Property.

3. Brine operation personal property will be assessed in 7 major categories, as follows:

a. wells;

b. operation equipment (surface equipment);

c. tanks (surface equipment);

d. lines;

e. inventories (material and supplies);

f. field improvements (docks, buildings, etc.);

g. other property (not included above).

4. The cost-new values listed below are to be adjusted to allow depreciation by use of the appropriate percent good listed in Table 1007.C. When determining the value of equipment associated with a single well, use the age of that well to determine the appropriate percent good. When determining the value of equipment used on multiple wells, the average age of the wells will determine the appropriate year to be used for this purpose.

5. Functional and/or economic obsolescence shall be considered in the analysis of fair market value as substantiated by the taxpayer in writing. Consistent with Louisiana R.S. 47:1957, the assessor may request additional documentation.

6. Sales, properly documented, should be considered by the assessor as fair market value, provided the sale meets all tests relative to it being a valid sale.

7. Surface Equipment-Property Description

Table 1007.D Surface Equipment
Property Description	$ Cost New
Actuators-(See Metering Equipment)
Automatic Control Equipment-(See Safety Systems)
Automatic Tank Switch Unit-(See Metering Equipment)
Communication Equipment-(See Telecommunications)
Dampeners-(See Metering Equipment- "Recorders")
Engines - Unattached-(Only includes engine and skids):	420
Per Horsepower
Fire Control System-(Assessed on an individual basis)
Furniture and Fixtures-(Assessed on an individual basis) (Field operations only, according to location.)
Generators-Package Unit only-(No special installation)	280
Per K.W.
Manifolds-(See Metering Equipment)
Material and Supplies-Inventories-(Assessed on an individual basis)
Meter Calibrating Vessels-(See Metering Equipment)
Meter Prover Tanks-(See Metering Equipment)
Meter Runs-(See Metering Equipment)
Meter Control Stations-(not considered Communication Equipment)-(Assessed on an individual basis)
Metering Equipment
Manifolds-Automatic Operated:	53,260
High Pressure	17,560
per well	37,990
per valve	12,830
Low Pressure	8,030
per well	9,030
per valve	10,900
NOTE: Automatic Operated System includes gas hydraulic and pneumatic valve actuators, (or motorized valves), block valves, flow monitors-in addition to normal equipment found on manual operated system. NO METERING EQUIPMENT INCLUDED.	15,190
	22,820
	30,390
	37,990
	51,750
	67,590
	83,730
Meter Runs - piping, valves and supports-no meters:	108,810 137,130
2 In. piping and valve	167,880
3 In. piping and valve	4,660
4 In. piping and valve	5,010
6 In. piping and valve	7,030
8 In. piping and valve	8,740
10 In. piping and valve	3,230
12 In. piping and valve	420
14 In. piping and valve
16 In. piping and valve
18 In. piping and valve
20 In. piping and valve
22 In. piping and valve
24 In. piping and valve
Metering Vessels (Accumulators):
1 bbl. calibration plate (20 x 9)
5 bbl. calibration plate (24 x 10)
7.5 bbl. calibration plate (30 x 10)
10 bbl. calibration plate (36 x 10)
Recorders (Meters)-Includes both static element and tube drive pulsation dampener-also one and two pen operations.
per meter
SOLAR PANEL (also see Telecommunications)
per unit (10' x 10')
Pipe Lines - Lease Lines
Steel	23,360
2 In. nominal size-per mile	31,470
2 1/2 In. nominal size-per mile	40,150
3 and 3 1/2 In. nominal size-per mile	69,030
4, 4 1/2 and 5 In. nominal size-per mile	101,360
6 In. nominal size-per mile	12,830
Poly Pipe	17,280
2 In. nominal size-per mile	22,080
2 1/2 In. nominal size-per mile	37,920
3 In. nominal size-per mile	55,690
4 In. nominal size-per mile
6 In. nominal size-per mile
Plastic-Fiberglass	19,930
2 In. nominal size-per mile	34,120
3 In. nominal size-per mile	58,640
4 In. nominal size-per mile	86,080
6 In. nominal size-per mile
NOTE: Allow 90% obsolescence credit for lines that are inactive, idle, open on both ends and dormant, which are being carried on corporate records solely for the purpose of retaining right of ways on the land and/or due to excessive capital outlay to refurbish or remove the lines.
Pipe Stock-(Assessed on an individual basis)
Pipe Stock-Exempt-Under La. Const., Art. X, §4 (19-C)
Pumps-In Line
per horsepower rating of motor	350
Pump-Motor Unit-pump and motor only
Class I-(water flood, s/w disposal, p/l, etc.)	420
Up to 300 HP-per HP of motor	510
Class II-(high pressure injection, etc.)
301 HP and up-per HP of motor
Regenerators (Accumulator)-(See Metering Equipment)
Regulators
per unit	3,300
Skimmer Tanks-(See Flow Tanks in Tanks section)
Sump/Dump Tanks-(See Metering Equipment -"Fluid Tanks")
Tanks-No metering equipment	Per Barrel*
Flow Tanks (receiver or gunbarrel)	46.10
50 to 548 bbl. Range	35.90
average tank size-250 bbl.	30.50
Stock Tanks (lease tanks)	27.00
100 to 750 bbl. Range	26.20
average tank size-300 bbl.	24.10
Storage Tanks (Closed Top)	22.60
1,000 barrels	21.20
1,500 barrels	14.90
2,000 barrels	11.20
2,001-5,000 barrels	43.60
5,001-10,000 barrels	29.50
10,001-15,000 barrels	21.90
15,001-55,000 barrels	19.50
55,001-150,000 barrels	18.80
Internal Floating Roof	16.60
10,000 barrels	14.50
20,000 barrels
30,000 barrels
50,000 barrels
55,000 barrels
80,000 barrels
100,000 barrels
* I.E.: (tanks size bbls.) x (no. of bbls.) x (cost-new factor)
Telecommunications Equipment
Microwave System	57,340
Telephone and data transmission	4,300
Radio telephone	12,250
Supervisory controls	27,950
remote terminal unit, well	720
master station	60
towers (installed):	730
heavy duty, guyed, per foot	150
light duty, guyed, per foot	210
heavy duty, self supporting, per foot	70
light duty, self supporting, per foot
equipment building, per sq. ft.
solar panels, per sq. ft.
Utility Compressors
per horsepower-rated on motor	940

La. Admin. Code tit. 61, § V-1007

Promulgated by the Division of Administration, Tax Commission, LR 49, Amended LR 491056 (6/1/2023), Amended LR 50, exp. 4/30/2024(Emergency), Amended LR 50379 (3/1/2024).

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:1837 and R.S. 47:2326.