Mont. Admin. r. 42.25.1807

Current through Register Vol. 23, December 6, 2024
Rule 42.25.1807 - AVERAGE DAILY WELL PRODUCTION CALCULATION
(1) In determining whether a lease or unit has an average daily production of less than 60,000 cubic feet of natural gas per well, only those wells that produced natural gas during the prior calendar year shall be used in the calculation. For natural gas that is processed to remove natural gas liquids, the volume (i.e., cubic feet) used to calculate the average daily production herein will be the volume prior to any removal of the natural gas liquids.
(2) In determining whether a lease or unit has an average daily production of less than 15 barrels of crude oil per well for stripper qualification, or three barrels of crude oil or less per well for the stripper well exemption or stripper well bonus, only those wells that produced crude oil during the prior calendar year shall be used in the calculation.
(3) The operator must provide a stripper calculation for the previous calendar year to the department to qualify each oil stripper or natural gas stripper lease or unit each year when filing the return for the quarter ending in March to qualify the lease or unit as stripper for the current year.
(4) If a well or group of wells has qualified as an enhanced recovery project or an expanded enhanced recovery project, all production from the well or wells, including any incremental production, must be included as production for the purpose of determining if the well or wells qualify as stripper.

Mont. Admin. r. 42.25.1807

NEW, 1996 MAR p. 2001, Eff. 7/19/96; AMD, 2000 MAR p. 1347, Eff. 5/26/00; AMD, 2005 MAR p. 2470, Eff. 12/9/05.

15-36-322, MCA; IMP, 15-36-303, 15-36-304, MCA;