- (1) If natural gas is sold pursuant to an arm's-length contract at the wellhead, the contract price multiplied by the volume of natural gas will be accepted as the total gross value.
- (2) If natural gas is sold in the absence of a contract the total gross value of the natural gas may be determined by reviewing comparable arm's-length contracts. The department will identify comparable arm's-length contracts utilizing factors including but not limited to; similar time, proximity to the location, similar duration, similar gas quality, and similar quantity of gas sold. Upon conducting a comparable arm's-length study, the department will attempt to identify comparable arms-length's contracts within the same field of the leases in question prior to using comparable arm's-length contracts from other fields.
- (3) If natural gas is sold through a non-arm's-length contract at the well or wells and sold with an arm's-length contract further downstream of the well or wells, the total gross value of the natural gas may be determined at the delivery point with delivery price adjustments.
Authorizing statute(s): 15-36-322, MCA
Implementing statute(s): 15-36-305, MCA
History: NEW, 2010 MAR p. 2580, Eff. 10/29/10.