Montana Code 15-36-304. Production tax rates imposed on oil and natural gas — exemption
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15-36-304. Production tax rates imposed on oil and natural gas — exemption. (1) The production of oil and natural gas is taxed as provided in this section. The tax is distributed as provided in 15-36-331 and 15-36-332.
Terms Used In Montana Code 15-36-304
- gas: means all natural gases, hydrocarbon gases, all forms of inert gas, and all other fluid hydrocarbons as produced at the wellhead and not defined as oil under 82-1-111. See Montana Code 15-36-303
- Oil: means crude petroleum or mineral oil and other hydrocarbons, regardless of gravity, that are produced at the wellhead in liquid form and that are not the result of condensation of gas after it leaves the wellhead. See Montana Code 15-36-303
(2)Natural gas is taxed on the gross taxable value of production based on the type of well and type of production according to the following schedule for working interest and nonworking interest owners:
| Working | Nonworking | |
| Interest | Interest | |
| (a)(i) first 12 months of qualifying production | 0.5% | 14.8% |
| (ii)after 12 months: | ||
| (A)pre-1999 wells | 14.8% | 14.8% |
| (B)post-1999 wells | 9% | 14.8% |
| (b)stripper natural gas pre-1999 wells | 11% | 14.8% |
| (c)horizontally completed well production: | ||
| (i)first 18 months of qualifying production | 0.5% | 14.8% |
| (ii)after 18 months | 9% | 14.8% |