Assessed value of oil or gas interests
Sec. 12.6. (a) For purposes of this section, the term "secondary
recovery method" includes but is not limited to the stimulation of oil
production by means of the injection of water, steam, hydrocarbons,
or chemicals, or by means of in situ combustion.
(b) The total assessed value of all interests in the oil located on or
beneath the surface of a particular tract of land equals the product of:
(1) the average daily production of the oil; multiplied by
(2) three hundred sixty-five (365); and multiplied by
(3) the posted price of oil on the assessment date.
However, if the oil is being extracted by use of a secondary recovery
method, the total assessed value of all interests in the oil equals
one-half (1/2) the assessed value computed under the formula
prescribed in this subsection. The appropriate township assessor
shall, in the manner prescribed by the department of local
government finance, apportion the total assessed value of all interests
in the oil among the owners of those interests.
(c) The appropriate township assessor shall, in the manner
prescribed by the department of local government finance, determine
and apportion the total assessed value of all interests in the gas
located beneath the surface of a particular tract of land.
(d) The department of local government finance shall prescribe a
schedule for township assessors to use in assessing the appurtenances
described in section 12.4 (c) of this chapter.
As added by P.L.198-2001, SEC.10.
Last modified: May 28, 2006