Rule 42.25.1805 - QUALIFICATION OF NEW OR EXPANDED RECOVERY PROJECTS(1) For new or expanded enhanced recovery projects the operator must provide to the department of revenue the board's approval of the project and the designated area of the project. If a project has not been approved by the board, the operator will not be allowed to report and pay taxes herein at the reduced rates for incremental production.(2) A tax return shall be filed for the wells in each designated area. If the designated area for a new or expanded enhanced recovery project does not include all the wells reported as a lease or unit for tax purposes prior to the inception of the new or expanded enhanced recovery project, the wells not included in the designated area approved by the board will continue to be reported as a lease or unit for tax purposes and none of the production from wells outside the designated area can be reported as incremental.(3) No production will qualify as incremental prior to January 1, 1994. For new or expanded projects commenced after January 1, 1994, approval should be obtained from the board for the project prior to the due date of any production tax returns. If, however, such approval is not received until after the returns are filed for any quarter the operator may file amended returns after the board has approved the project and established a production decline rate for the project.Mont. Admin. r. 42.25.1805
NEW, 1996 MAR p. 2001, Eff. 7/19/96.15-36-322, MCA; IMP, 15-36-304, MCA;