Terms Used In Montana Code > Title 15 > Chapter 36 > Part 3 - Oil and Gas Production Tax Act

• Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
• Board: means the board of oil and gas conservation provided for in 2-15-3303. See Montana Code 15-36-303
• Contract: A legal written agreement that becomes binding when signed.
• Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
• Department: means the department of revenue provided for in 2-15-1301. See Montana Code 15-36-303
• Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
• Enhanced recovery project: means the use of any process for the displacement of oil from the earth other than primary recovery and includes the use of an immiscible, miscible, chemical, thermal, or biological process. See Montana Code 15-36-303
• Existing enhanced recovery project: means an enhanced recovery project that began development before January 1, 1994. See Montana Code 15-36-303
• Fraud: Intentional deception resulting in injury to another.
• 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
• Horizontal drain hole: means that portion of a wellbore with 70 degrees to 110 degrees deviation from the vertical and a horizontal projection within the common source of supply, as that term is defined by the board, that exceeds 100 feet. See Montana Code 15-36-303
• Horizontally completed well: means :

  (a)a well with one or more horizontal drain holes; or

  (b)any other well classified by the board as a horizontally completed well. See Montana Code 15-36-303

• Incremental production: means :

  (a)the volume of oil produced by a new enhanced recovery project, by a well in primary recovery recompleted as a horizontally completed well, by recompletion of an existing horizontal drain hole, or by an expanded enhanced recovery project, that is in excess of the production decline rate established under the conditions existing before:

  (i)commencing the recompletion of a well as a horizontally completed well;

  (ii)expanding the existing enhanced recovery project; or

  (iii)commencing a new enhanced recovery project; or

  (b)in the case of any project that had no taxable production prior to commencing the enhanced recovery project, all production of oil from the enhanced recovery project. See Montana Code 15-36-303

• Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). ^{Source: OCC}
• Lien: A claim against real or personal property in satisfaction of a debt.
• New enhanced recovery project: means an enhanced recovery project that began development after December 31, 1993. 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
• Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
• Primary recovery: means the displacement of oil from the earth into the wellbore by means of the natural pressure of the oil reservoir and includes artificial lift. See Montana Code 15-36-303
• Process: means a writ or summons issued in the course of judicial proceedings. See Montana Code 1-1-202
• producer: means a person who produces oil or natural gas within this state or who owns, controls, manages, leases, or operates within this state any well or wells from which any marketable oil or natural gas is extracted or produced. See Montana Code 15-36-303
• Production decline rate: means the projected rate of future oil or natural gas production, extrapolated by a method approved by the board, that must be determined for a project area prior to commencing a new or expanded enhanced recovery project or the recompletion of a well as a horizontally completed well or the recompletion of an existing horizontal drain hole. See Montana Code 15-36-303
• Property: means real and personal property. See Montana Code 1-1-205
• Qualifying production: means the first 12 months of production of oil or natural gas from a well drilled after December 31, 1998, or the first 18 months of production of oil or natural gas from a horizontally completed well drilled after December 31, 1998, or from a well that has not produced oil or natural gas during the 5 years immediately preceding the first month of qualifying production. See Montana Code 15-36-303
• Secondary recovery project: means an enhanced recovery project, other than a tertiary recovery project, that commenced or was expanded after December 31, 1993, and meets each of the following requirements:

  (a)The project must be certified as a secondary recovery project to the department by the board. See Montana Code 15-36-303

• Several: means two or more. See Montana Code 1-1-201
• State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
• Tertiary recovery project: means an enhanced recovery project, other than a secondary recovery project, using a tertiary recovery method that meets the following requirements:

  (a)The project must be certified as a tertiary recovery project to the department by the board. See Montana Code 15-36-303

• Trustee: A person or institution holding and administering property in trust.
• United States: includes the District of Columbia and the territories. See Montana Code 1-1-201
• wells: means a single well or a group of wells in one field or production unit and under the control of one operator or producer. See Montana Code 15-36-303
• Writing: includes printing. See Montana Code 1-1-203