Overview

Drilling Rig Operators must report all rotary-drilling rigs on CAB-D2 Form. Rotary drilling rigs are to be valued using a “schedule value” as defined in Section 7-36-33(B) (4) NMSA 1978 based on depth capacity or rig class to determine similar or like units. The schedule applicable to rotary drilling rigs is:

Depth Capacity

Property Value

2000-4999

55,840

5000-7499

111,607

7500-9999

167,412

10000-12499

223,215

12500-14999

279,019

15000-17999

334,824

18000-19999

379,466

20000-24999

491,071

25000-29999

580,355


  • Note: that "Depth Capacity" as that phrase is used in this schedule means the maximum depth of well that the rig unit is capable of drilling without exceeding its safe operating design limits.

  • NoteA "rotary drilling rig unit" means all of the component parts of a unit that normally are transported to a site and set up to make a complete rig that is to be used for drilling a well for Oil, Gas, Carbon Dioxide, Water, Geothermal or other minerals. A "rig unit" includes, but is not limited to: derrick and substructure, crown block, traveling block, drilling line, sand line, rotary hose and standpipe, hook, tongs and swivel, elevators, kelly, rotary table, draw works, engine, instruments, slush, and mud pumps, generators, electric lines and accessories, fuel tanks, mud tanks, boilers, feed pump, blowout preventer, tools and supplies, water pumps and lines, drill bits, stairs, railings, dog house, tool joints and miscellaneous equipment.

  • Note: "Rig Class" means a manufacturer's designation by letter and number of name and number commonly understood within the drilling industry as indicative of depth capacity.


Form Schedule

The forms listed below must be completed for your rendition:

  • Generic CAB Forms

    • CAB-01: Report of Company Information

    • CAB-04: Report of Real Property

    • CAB-05-D: Report of Personal Property (Daily Allocation) 

      • Note: Use to report all general and heavy construction equipment, and related assets. You must also report all vehicles that do not have a Current New Mexico License Plate that were in New Mexico for 20 days or more

      • Note: The number of days in jurisdiction is used to calculate the percentage of time allocated to New Mexico. Enter the actual or estimated number of days that the equipment will be located in a particular county in New Mexico. Even if you overestimate the time, you will be subject to the reported valuation. If you underestimate the time, you will be subject to an additional assessment with penalties. BE AS ACCURATE AS POSSIBLE. 

      • Note: All tangible personal property owned or utilized by construction and drilling contractors not located in the state on January 1 but brought into the state and located there for more than twenty days subsequent to January 1 must report to the State Assessed Property Bureau for property taxation purposes as of the first day of the month following the month in which the equipment has remained in the state for more than twenty days.

    • CAB-06: Report of Construction Work in Progress (CWIP)

    • CAB-08: Report of Leased Property

  • Industry CAB Forms

    • CAB-D2: Report of Drilling Rigs

      • Note: List all rotary drilling rigs that are located in the State of New Mexico as of January 1st and all rotary drilling rigs that you expect will be located in New Mexico for a period of 20 days or more during the tax year.

      • Note: The number of days in jurisdiction is used to calculate the percentage of time allocated to New Mexico. Enter the actual or estimated number of days that the equipment will be located in a particular county in New Mexico. Even if you overestimate the time, you will be subject to the reported valuation. If you underestimate the time, you will be subject to an additional assessment with penalties. BE AS ACCURATE AS POSSIBLE. 

Required Attachments

The following attachments are required for your rendition:

  • Daily Work Order Log: A copy of the daily work order log for January 1st or the first day a rotary drilling rig is located in New Mexico.

  • Annual Report to Stockholders

  • Detailed, audited income and expense statement