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Home My WebLink About20172585.tiffPETITION TO STATE BOARD OF ASSESSMENT APPEALS 1313 Sherman Street, Room 315 Phone: (303) 864-7710 Denver, Colorado 80203 Fax: ( 303) 864-7719 Date: G ) I Zoir7 Property Owner: F'irrn4ie;:-D(i 1V, subject property: bt 11;;1e[ ,4 i J i, VI ^�j icJ�l� f t 1 t . y tG Stmt Addrbss , City J J SEP 2 5 2017 Schedule Number(s): 0952 to 224 0952 ,21.D7 f C) 53235 I Attach separate sheet if necessary WELD COUNTY tOBoard of Equalization QQMMISSIONERS Appeals the decision of the WA_ \A , 0 Board of Commissioners Dated: 06 i 312c:,i 7 County 0 State Property Tax Administrator Tax Year: .2C))/ - This appeal concerns: Valuation 0 RefundlAbaternent 0 Exemption 0 State Assessed VED The subject property is currently classified as: 0 Agricultural 0 Commercial 0 Mixed -Use ❑ Oil & Gas 0 Non -Exempt (or Partially Non -Exempt) 0 Vacant Land 0 Residential 0 State Assessed (Personal Property ❑Other: The subject property should be classified aActual value assigned to subject property: ds (it different�S that he current classification): 1.)1 S L2 -r& Petitioner's estimate of value: 172.0\ .: N� It �t 8•t 5 uor i r \s 'i{cl.UG. esn hours. Estimated time for Petitioner to present the appeal: minutes or Not less than 30 minutes. Board will allow equal 5me to County or Property Tax Administrator. Appearance: ❑Petitioner will be present at the hearing ❑Petitioner will be represented by an agent [Petitioner will be represented by an attorney Petitioner will appear by telephone Petitioner is responsible for calling the Board at 303-864-7710 on the scheduled date and time of the hearing (Mountain Time Zone) 0 Petitioner would like to appear by video conference Petitioner must contact the Board at 303-864-7710 at least 21 days in advance of the scheduled hearing to confirm availability of video conference equipment. If the property owner is an entity, it must appear under the representation of an attorney licensed in Colorado except as follows: A closely held entity may be represented by an officer of the entity as long as the amount in controversy does not exceed $15,000, exclusive of costs, interest or statutory penalties. A closely held entity can have no more than three owners. See Section 13-1-127, C.R.S. A closely held entity that will be represented by an officer of the entity must provide a letter to the Board with this petition stating that it has no more than three owners and that the tax amount at issue does not exceed $15,000. A trust filing a petition may be represented by a trustee, an attorney or an agent. Filing Fee: Cash is not accepted None $33.75 Petitioner is appearing pro se (self -represented) and has not filed more than two petitions with the Board of Assessment Appeals during this fiscal year (July 1 — June 30). Petitioner is appearing pro se (self -represented) and has filed more than two petitions with the Board of Assessment Appeals during this fiscal year (July 1 — June 30). x$101.25 Petitioner will be represented by an agent or by an attorney. in the space below, please explain why you disagree with the value assigned to the subject property: \-' :lfl ^.— 'Yk - v!'lt k , s ds2_.b_r ryt•irta d 'pL ��- wiser a-..,1 -1,-a.1 ;1 3 fr.ur .c.izt . I Ce -- AW 4 cif Vil SLL� T-- 7- 5. c fv�ALt-e.c--- i`, INti^,C r C,� 1k u`,dW ''� A r`ic6S1 --1-\ko_ CI L.L:‘,cu.LI Wl clo-f rcKt\no., 2tcxicsa. 3, YY1 M u Ili CGi -1- i o ( S to/ aJ t -7 cc-: OASRCCwfQO) co_Co..11) ci/a5/ l7 )O(7-aS85 OkS 009 7 Required attachments to this form: [1 Assessor's or Property Tax Administrator's Notice of Valuation or Notice of Denial Decision of County Board of Equalization, County Board of Commissioners or Property Tax Administrator Attachments required under certain circums₹ances: CIA notarized Letter of Authorization if an agent will be representing Petitioner ❑A list of names, last known addresses and telephone numbers of co -owners or parties directly interested in the subject property if applicable. Certificate of Service I hereby certify that a true and correct copy of the foregoing Petition to the State Board of Assessment Appeals and attachments were mailed, faxed or hand delivered to: M Board of Equalization 0 Board of Commissioners 0State Property Tax Administrator County at the following address: I 5D O rect. 2,) �aX 7j $ fec lec t CD $d i on Date i hereby certify that a true and correct copy of the foregoing Petition to the State Board of Assessment Appeals and attachments were mailed, faxed or hand delivered to all co -owners or parties directly interested in the subject property on Date I hereby certify that four (4) true and correct copies of the foregoing Petition to the State Board of Assessment Appeals and attachments were mailed or hand delivered to the Board of Assessment Appeals at 1313 Sherman Street, Room 315, Denver,. CO 80203 G lam\ on Date (One copy may be faxed to the Board but the original and two additional copies must be mailed or hand delivered.) PETITIONER'S MAILING ADDRESS IS REQUIRED EVEN IF PETITIONER IS REPRESENTED BY AN AGENT OR ATTORNEY Sqt'''r, Signature of Agent or Attorney Siaraturener Printed Name Mailing Address City, State, Zip Code 4/05- //'',, ��77-` Telephone: 5- /'5 .770O Telephone: Daytime number i -Mail: Wc�?Pr . -Zynlierd A ii; a ' ne-t E -Mail: J It is the Petitioner's responsibility to notify the BAA of any change of address. Petitioners are strongly encouraged to read the instructions and Rules of the Board of Assessment Appeals prior to completing this Petition Form. The Instructions and Rules are available on the internet at wn✓w.dola.Calorado.aovlbaa or may be requested by phone at 303-864-7710. Printed Name IL�DR NL EYpreSccA.3..i-J, ) Mailing Address O1::tah6ma � { a 7_3/1 City, State, Zip Code J August 3, 2017 Petitioner: FRONTIER DRILLING 1608 NW EXPRESSWAY STE 102 OKLAHOMA CITY, OK 73118-1440 CLERK TO THE BOARD PHONE (970) 400-4226 FAX (970) 336-7233 WEBSITE: Agent (if applicable): 1150 O STREET P.O. BOX 758 GREELEY CO 80632 RE: THE BOARD OF EQUALIZATION 2017, WELD COUNTY, COLORADO NOTICE OF DECISION Docket #: 2017-2585 Appeal #: 2008217122 Hearing Date: 8/3/2017 1:30 PM Dear Petitioner: On the day indicated above, the Board of County Commissioners of Weld County Colorado convened and acting as the Board of Equalization, pursuant to C.R.S. Section 39-8-101 et seq., considered petition for appeal of the Weld County Assessor's valuation of your property described above, for the year 2017. Account # Decision The Assessment and valuation is set as follows: Actual Value as Actual Value as Set by Determined by Assessor Board O9526224 Deny - Denied in Full O9526267 Deny - Denied in Full O9532238 Deny - Denied in Full $4,400,000 $2,200,000 $124,317 $4,400,000 $2,200,000 $124,317 Totals: $6,724,317 3 Total Accounts $6,724,317 A denial of a petition, in whole or in part, by the Board of Equalization must be appealed within thirty (30) days of the date the denial is mailed to you. You must select only one of the following three (3) options for appeal: 1. Appeal to Board of Assessment Appeals: You have the right to appeal the County Board of Equalization's decision to the Colorado Board of Assessment Appeals. A hearing before that Board will be the last time you may present testimony or exhibits or other evidence, or call witnesses in support of your valuation. If the decision of the Board of Assessment Appeals is further appealed to the Court of Appeals pursuant to C.R.S. Section 39-8-108(2), only the record of proceedings from your hearing before the Board of Assessment Appeals and your legal brief are filed with the appellate court. All appeals to the Board of Assessment Appeals filed after August 10, 2016, MUST comply with the following provisions of C.R.S. Section 39-8-107(5): (5)(a)(I) On and after August 10, 2011, in addition to any other requirements under law, any petitioner appealing either a valuation of rent -producing commercial real property to the board of assessment appeals pursuant to section 39-8-108(1) or a denial of an abatement of taxes pursuant to section 39-10-114 shall provide to the county board of equalization or to the board of county commissioners of the county in the case of an abatement, and not to the board of assessment appeals, the following information, if applicable: (A) Actual annual rental income for two full years including the base year for the relevant property tax year; (B) Tenant reimbursements for two full years including the base year for the relevant property tax year; (C) Itemized expenses for two full years including the base year for the relevant property tax year; and (D) Rent roll data, including the name of any tenants, the address, unit, or suite number of the subject property, lease start and end dates, option terms, base rent, square footage leased, and vacant space for two full years including the base year for the relevant property tax year. (II) The petitioner shall provide the information required by subparagraph (I) of this paragraph (a) within ninety days after the appeal has been filed with the board of assessment appeals. (b)(I) The assessor, the county board of equalization, or the board of county commissioners of the county, as applicable, shall, upon request made by the petitioner, provide to a petitioner who has filed an appeal with the board of assessment appeals not more than ninety days after receipt of the petitioner's request, the following information: (A) All of the underlying data used by the county in calculating the value of the subject property that is being appealed, including the capitalization rate for such property; and (B) The names of any commercially available and copyrighted publications used in calculating the value of the subject property. (II) The party providing the information to the petitioner pursuant to subparagraph (I) of this paragraph (b) shall redact all confidential information contained therein. (c) If a petitioner fails to provide the information required by subparagraph (I) of paragraph (a) of this subsection (5) by the deadline specified in subparagraph (II) of said paragraph (a), the county may move the board of assessment appeals to compel disclosure and to issue appropriate sanctions for noncompliance with such order. The motion may be made directly by the county attorney and shall be accompanied by a certification that the county assessor or the county board of equalization has in good faith conferred or attempted to confer with such petitioner in an effort to obtain the information without action by the board of assessment appeals. If an order compelling disclosure is issued under this paragraph (c) and the petitioner fails to comply with such order, the board of assessment appeals may make such orders in regard to the noncompliance as are just and reasonable under the circumstances, including an order dismissing the action or the entry of a judgment by default against the petitioner. Interest due the taxpayer shall cease to accrue as of the date the order compelling disclosure is issued, and the accrual of interest shall resume as of the date the contested information has been provided by the taxpayer. Appeals to the Board of Assessment Appeals must be made on forms furnished by that Board, and must be mailed or delivered within thirty (30) days of the date the denial by the Board of Equalization is mailed to you. The address and telephone number of the Board of Assessment Appeals are: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, Colorado 80203 Telephone Number: 303-864-7710 Email: baa@state.co.us Fees for Appeal to the Board of Assessment Appeals: A taxpayer representing himself is not charged for the first two (2) appeals to the Board of Assessment Appeals. A taxpayer represented by an attorney or agent must pay a fee of $101.25 per appeal. OR 2. Appeal to District Court: You have the right to appeal the decision of the Board of Equalization to the District Court of the /county wherein your property is located: in this case that is Weld County District Court. A hearing before The District Court will be the last time you may present testimony or exhibits or other evidence, or call witnesses in support of your valuation. If the decision of the District Court is further appealed to the Court of Appeals pursuant to C.R.S. Section 39-8-108(1), the rules of Colorado appellate review and C.R.S. Section 24-4-106(9), govern the process. OR 3. Binding Arbitration: You have the right to submit your case to binding arbitration. If you choose this option, the arbitrator's decision is final and you have no further right to appeal your current valuation. C.R.S. Section 39-8-108.5 governs this process. The arbitration process involves the following: a. Select an Arbitrator: You must notify the Board of Equalization that you will pursue arbitration. You and the Board of Equalization will select an arbitrator from the official list of qualified people. If you cannot agree on an arbitrator, the District Court of the county in which the property is located (i.e., Weld) will select the arbitrator. b. Arbitration Hearing Procedure: Arbitration hearings are held within sixty (60) days from the date the arbitrator is selected, and are set by the arbitrator. Both you and the Board of Equalization are entitled to participate in the hearing. The hearing is informal. The arbitrator has the authority to issue subpoenas for witnesses, books, records documents and other evidence pertaining to the value of the property. The arbitrator also has the authority to administer oaths, and determine all questions of law and fact presented to him. The arbitration hearing may be confidential and closed to the public if you and the Board of Equalization agree. The arbitrator's decision must be delivered personally or by registered mail within ten (10) days of the arbitration hearing. c. Fees and Expenses: The arbitrator's fees and expenses are agreed upon by you and the Board of Equalization. In the case of residential real property, the fess may not exceed $150.00 per case. For cases other than residential real property, the arbitrator's total fees and expenses are agreed to by you and Board of Equalization, but are paid by the parties as ordered by the arbitrator. If you have questions concerning the above information, please call me at (970) 400-4226. Very truly yours, -21,4it4" L4A Esther E. Gesick, Clerk to the Board Weld County Board of County Commissioners and Board of Equalization Cc: Christopher Woodruff, Weld County Assessor NOTICE OF DETERMINATION Christopher M. Woodruff Weld County Assessor 1400 N 17T Ave Greeley. CO 80631 w. FRONTIPR DRiU 1NG 1303 ,NW L v.RESS'AtA" STE r.2 OKLAHOMA °:, IT OK 7" t 3-' 4-4U PERSONAL PROPERTY $4,400,000 I $4,400,000 TOTAL Date of Notice: 7/10/2017 Telephone: (970) 400-3650 Fax: (970) 304-6433 Office Hours: 8 00AM - 5:00PM DESCRIPTION/ PHYSICAL LOCATION The Assessor has carefully studied all available information, giving particular attention to the specifics included on your protest, The Assessor's determination of value after review is based on the following: PROI - Your personal property has been valued in accordance with Colorado law. Other personal property, similar in nature, has been consistently valued using the same statutory methods. if you disagree with the Assessor's decision, you have the right to appeal to the County Board of Equalization for further consideration, § 39-8-106(1)(a), C.R.S. The deadline for filing personal property appeals is July 20. The Assessor establishes property values. The local taxing authorities (county, school district, city, ire protection, and other special districts) set mill levies. The mill levy requested by each taxing authority is based on a projected budget and the property tax revenue required to adequately fund the services it provides to its taxpayers. The local taxing authorities hold budget hearings in the fall. if you are concerned about mill levies, we recommend that you attend these budget hearings. Please refer to last year's tax bill or ask your Assessor for a listing of the local taxing authorities. Please refer to the reverse side of this notice for additional information. Agent Of Acpiicaale}. 15 -OPT -AR ARL V0L 1-84 Rev 01-16 APPEAL PROCEDURES County Board of Equalization Hearings will be held from July 24`h' through August 4th at 1150 O Street. To appeal the Assessor's decision. complete the Petition to the County Board of Equalization shown below. and mall, file online: or deliver a copy of both sides of this form to: Weld County Board of Equalization 1150 O Street. P.O. Box 758 Greeley, CO 80631 Telephone: (970) 356-4000 ext, 4225 Online: 'nttp://www.co.weld,co.us/appsicboe/ To preserve your appeal rights, your Petition to the County Board of Equalization must be postmarked or delivered on or before July 20 for personal property — after such date, your right to appeal is lost. You may be required to prove that you flied a timely appeal; therefore, we recommend that all correspondence be mailed with proof of mailing. You will be notified of the date and time scheduled for your hearing. The County Board of Equalization must mail a written decision to you within five business days following the date of the decision. The County Board of Equalization must conclude hearings and render decisions by August 5, § 39-5-137(2), C.R.S. If you do not receive a decision from the County Board of Equalization and you wsh to continue your appeal, you must file an appeal with the Board of Assessment Appeals by September 10, § 39-2-'125(1)(e), C,R,S. If you are dissatisfied with the County Board of Equalization's decision and you wish to continue your appeal, you must appeal within 30 days of the date of the County Board's written decision to ONE of the following: Board of Assessment Appeals District Court 1313 Sherman Street, Room 315 Contact the District Court in the County Denver, CO 80203 where the property is located. See your (303) 866-5880 local telephone book for the address and vvwm.dola.00lorado.govibaa telephone number. Binding Arbitration For a list of arbitrators, contact the County Commissioners at the address listed for the County Board of Equalization. if the date for filing any report, schedule: claim, tax return, statement, remittance, or other document falls upon a Saturday, Sunday, or legal holiday, it shall be deemed to have been timely filed if filed on the next business day, 39-1-120(3), C. R. S. PETITION TO COUNTY BARD OF E UALIZATIO . What is your estimate of the property's value as of June 30, 2016? (Your opinion of value in terms of a specific dollar amount is required for real property pursuant to 3 39-8-106(1.5), C.R.S.) $ ' i rl), Crv- x What is the basis for your estimate of value or your reason for requesting a review? (Please attach additional sheets as necessary and any supporting documentation, i.e., comparable sales. rent roll, original installed cost, appraisal, etc ) AT°ESTAT€ON 1, the undersigned owner or agent' of the property identified above, affirm that the statements contained herein and on any attachments hereto are true and complete. Signature Email Address F7; 9414" Telephone Number or, t ' Attach letter of authorization signed by property owner 1J-DPT-AR ARL VOL 2 1-84 Rev g1-16 NOTICE OF DETERMINATION Christopher M. Woodruff Wed County Assessor 1400 N 17 Ave Greeley, CO 30631 0526267 TAX AREA Date of Notice: 7/10/2017 Telephone: (970) 400-3650 Fax: (970) 304-6433 Office Hours: 8:00AM - 5:00PM GAL DESCRIPTION/ PHYSICAL LOCATION 0967 FRONTIER DRILLING 1308 LPN EXPRESSWAY STE 102 OKLAHOMA CITY, OK 731 I3-'442 I PERSONAL PROPERTY DRiLLiNG RIG 10 2.200,000 2,200, 000 TOTAL $2,200,0001 $2,200,000 The Assessor has carefully studied all available information, giving particular attention to the specifics included on your protest„ The Assessor's determination of value after review is based on the following: ©1 - Your personal property has been valued in accordance with Colorado law. Other personal property, similar in nature, has been consistently valued using the same statutory methods. If you disagree with the Assessor's decision, you have the right to appeal to the County Board of Equalization for further consideration, § 39-8-106(1)(a), C.R.S. The deadline for filing personal property appeals is July 20. The Assessor establishes property values. The local taxing authorities (county, school district, city, fire protection, and other special districts) set mill levies. The mill levy requested by each taxing authority is based on a projected budget and the property tax revenue required to adequately fund the services it provides to its taxpayers. The local taxing authorities hold budget hearings in the fall. If you are concerned about rniil levies, we recommend that you attend these budget hearings. Please refer to last years tax bill or ask your Assessor for a listing of the local taxing authorities. Please refer to the reverse side of this notice for additional information. Agent (If Applicable): 15-DPT-AR ARL VOL 2 1-84 Rev 01-16 APPEAL PROCEDURES County Board of Equalization Hearings will be held from July 24' through August 4' at 1150 O Street. -Ff.:, appeal the Asses.sc 's decision complete the Petition to the County Board of Equalization shown ,pe:c1:, and mail, file oniine, or deliver a copy of both sides of this forii to: Weld County Board of Equalization 1150 O Street, P.C.. Box 753 Greeley, CO 80631 Telephone: (970) 356-4000 ext. 4225 Online: htto://www.coiweld.co:uslapps/cbo-e! To preserve your appeal rights, your Petition to the County Board of Equalization must be postmarked or delivered on or before July 20 for personal property after such date, your right to appeal is lost. You may be required to prove that you filed a timely appeal; therefore, we recommend that ail correspondence be mailed with proof of mailing. You will be notified of the date and time scheduled for your hearing. The County Board of Equalization must mail a written decision to you within rive business days following the date of the decision. The County Board of Equalization must conclude hearings and render decisions by August 5, 3 39-8.107(2), C.R.S. If you do not receive a decision from the County Board of Equalization and you-- wish o continue your appeal, you (must file an appeal with the- Board of Assessment Appeals by September 10, § 39-2-125( 1)(e), C.R.S. If you are dissatisfied with the County Board of Equalization's decision and you wish to continue your appeal, you must appeal within 30 days of the date of the County Board's written decision to ONE of the following: Board of Assessment Appeals District Court 13'13 Sherman Street, Room 315 Contact the District Court in the County Denver, CO 80203 where the property is located. See your (303) 566-5880 local telephone book for the address and wwiv doia.coloradc,govibaa telephone number. Binding Arbitration For a list of arbitrators, contact the County Commissioners at the address listed for the County Board of Equalization. if the date for filing any report, schedule, claim, tax return, statement, remittance, or other document (falls upon a Saturday, Sunday, or legal holiday, it shall be deemed to have been timely filed if filed on the next business day ,' 39-1-12(3). C.R.S. ?E tT€.{ N '!` 1 "l "EOARD.,_Q :EQUALIZATION ATl"ON What is your estimate of the property's value as of June 30, 2016? (Your opinion of value in terms of a specific doilar amount is required for real property pursuant to § 39-8-106(1"5)_ C.R.S.) What is the basis for your estimate of value or your reason for requesting a review? (Please attach additional sheets as necessary and any supporting documentation, i e., comparable sales, rent roll, original instaliad cost, appraisal, etc.; , , 1.t' d" ? +#`AEA r` £ �,• .,-i�. ,{:.-(,u' 1, the undersigned owner or agent' of the property identified above, affirm that the statements contained herein and on any attachments hereto are true and complete Signature Email Address Telephone Number Attach letter of authorization signed by property owner. 15 -OPT -AR r\RL VOL2 1-84 Rev 0:-16 NOTICE OF DETERMINATION Christopher IM Weodruuff 'd'i'ced County Assessor 1400 N v 17 Ave Greeley, CO 80631 ACCOUNT O9532238 12017 R TA 0967 Date of Notice: 7/10/9017 Telephone: (970) 400-3650 Fax: (970) 304-6433 Office Hours: 8:00AM — 5:00PM LEGAL DESCRIPTION/ PHYSICAL LOCATION tr O FRONTIER DRILLING 1508 NW EXPRESSWAY STE 102 OKLAHOMA C₹Ty, OK 73113-1440 PERSONAL PROPERTY DRILLING R!G 4 ESS©f VALUE PRIOR TO REVIEW 124,317 I 124,317 I I AL] $124,317 $124,317 The Assessor has carefully studied all available information, giving particular attention to the specifics included on your protest. The Assessor's determination of value after review is based on the following: PP01 - Your personal property has been valued in accordance with Colorado law. Other personal property, similar in nature, has been consistently valued using the same statutory methods. If you disagree with the Assessor's decision, you have the right to appeal to the County Board of Equalization for further consideration, § 39-8-106(1)(a), C.R.S. The deadline for filing personal property appeals is July 20. The Assessor establishes property values. The local taxing authorities (county, school district, city, fire protection, and other special districts) set mill levies. The mill levy requested by each taxing authority is based on a projected budget and the property tax revenue required to adequately fund the services it provides to its taxpayers. The local taxing authorities hold budget hearings in the fall. If you are concerned about mill levies, we recommend that you attend these budget hearings. Please refer to last year's tax bill or ask your Assessor for a listing of the local taxing authorities. Please refer to the reverse side of this notice for additional information. Agent (If Applicable): .5-DPT-.AR ARL VOL 2 1-54 Rev 01-15 APPEAL PROCEDURES County Board of Equalization Hearings will be held from July 24th through August 4th at 1150 O Street. To appeal the Assessor's decision, complete the Petition to the County Board of Equalization shown below, and mail, file online, or deliver a copy of both sides of this form to: Weld County Board of Equalization 1150 O Street, P,O. Box 758 Greeley, CO 80631 Telephone: (97 0) 356-4000 ext. 4225 Online: http://www_co.weld.co.us/apps/oboe/ To preserve your appeal rights, your Petition to the County Board of Equalization must be postmarked or delivered on or before July 20 for personal property — after such date, your right to appeai is lost. You may be required to prove that you filed a timely appeal; therefore, we recommend that all correspondence be mailed with proof of mailing. You will be notified of the date and time scheduled for your hearing. The County Board of Equalization must mail a written decision to you within five business days following the date of the decision. The County Board of Equalization must conclude hearings and render decisions by August 5, § 39-3-107(2), C.R.S. ►f you do not receive a decision from the County Board of EqualizatIoon and you wish to continue your appeal, you must file an appeal with the Board of Assessment Appeals by September 10, § 39-2-125(1)(e), C.R.S. If you are dissatisfied with the County Board of Equalization's decision and you wish to continue your appeal, you must appeal within 30 days of the date of the County Board's written decision to ONE of the following: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, CO 80203 (303) 866-5880 www.dola. colorado.govfbaa Binding Arbitration For a list of arbitrators, contact the County Commissioners at the address listed for the County Board of Equalization. If the date for filing any report, schedule, claim, tax return, statement, remittance, or other document falls upon a Saturday, Sunday, or legal holiday, it shall be deemed to have been timely filed if filed on the next business day, ' 39-1-120(3), C.R.S. District Court Contact the District Court in the County where the property is located. See your local telephone book for the address and telephone number. T[ 1N TO COUNTY BOARD tF,EQUALIZATIOl What is your estimate of the property's value as of June 30, 2016? (Your opinion of value in terms of a specific dollar amount is required for real property pursuant to § 39-8-106(1.5), C.R.S.) . $ "z�( i sue. What is the basis for your estimate of value or your reason for requesting a review? (Please attach additional sheets as necessary and any supporting documentation, Le., comparable sales, rent roll, original insta!lect,cost, appraisal, etc.) T" ESTATION I, the undersigned owner or agent' of the property identified above, affirm that the statements contained herein and on any attachments hereto are true and complete. tins_ 74 5 -- t e Signature ` Telephone Number Email Addres" rtC./?r .1 Attach letter of authorization signed by property owner. 15-DPT-AR ARL VOL 2 1-34 Rev 01-16 COLORADO Department od Local Affairs September 7, 2017 Robert Hammons Frontier Drilling 1608 NW Expressway Suite 102 Oklahoma City, OK 73118 Re: Frontier Drilling v. Weld County Board of Equalization Dear Mr. Hammons, The Board of Assessment Appeals received your request by letter on September 6, 2017. Rule 6 of the "Rules of the Board of Assessment Appeals" requires all appeals to the Board to be on forms prescribed by the Board. I have enclosed the Board's petition form and packet of information for your use in filing the above -reference appeal. The Petition form is also available on the internet at www.dola.colorado.gov/ baa. As your request to appeal has not been received on the proper forms, please prepare your appeal according to the instructions in the cover letter and return it to the Board no later than September 20, 2017. Receipt by the Board of the proper forms by September 20, 2017 will be considered receipt of your appeal as of the date your letter was received. Please note that this notice is merely advisory and in no way confirms that this Board has jurisdiction or that the appeal meets jurisdictional requirements. ALL MATERIAL FILED WITH THIS BOARD MUST BE SUBMITTED IN QUADRUPLICATE. If the Petitioner is a domestic or foreign entity (C.R.S. 7-90-102), an attorney licensed in Colorado is required to represent the entity in all legal proceedings before the Board except as specified in C.R.S. 13- 1-127. YOU MUST INCLUDE A COPY OF THE ORIGINAL LETTER YOU SENT TO THE BOARD AND ONE COPY OF THIS LETTER WITH YOUR PETITION FORMS. Please contact our office if you have any questions. Sincerely, Christine Fontenot Docket Assistant Governor John W. Hickenlooper I Iry Halter, Executive Director I Mike Beery, Division Director 1313 Sherman St., Room 315, Denver, CO 80203 P 303.864.7710 F 303.864.7719 www.dola.colorado.gov Strengthening Colorado Communities September 1, 2017 Board of Assessment Appeals County Clerk 1313 Sherman Street, Room 315 Denver, CO 80203 RE: Personal Property Values Dear Board: Frontier Drilling would like to protest the decision of the Weld County Board of Equalization for the property values for the year 2017. Frontier Drilling feels that the rig values are excessive for the 2016 market prices. Thank you for your time and consideration in the valuation of Frontier Drilling's rigs Stacked in Weld County. Regards, Robert Hammons 1608 NW Expressway Suite 102 OKCI OK 73118 Phone 405-745-7700 Fax 405-745-6700 August 3, 2017 Petitioner: FRONTIER DRILLING 1608 NW EXPRESSWAY STE 102 OKLAHOMA CITY, OK 73118-1440 CLERK TO THE BOARD PHONE (970) 400-4226 FAX (970) 336-7233 WEBSITE: www.co.weld.co.us 1150 O STREET P.O. BOX 758 GREELEY CO 80632 Agent (if applicable): RE: THE BOARD OF EQUALIZATION 2017, WELD COUNTY, COLORADO NOTICE OF DECISION Docket #: 2017-2585 Appeal #: 2008217122 Hearing Date: 8/3/2017 1:30 PM Dear Petitioner: On the day indicated above, the Board of County Commissioners of Weld County Colorado convened and acting as the Board of Equalization, pursuant to C.R.S. Section 39-8-101 et seq., considered petition for appeal of the Weld County Assessor's valuation of your property described above, for the year 2017. Account # Decision The Assessment and valuation is set as follows: Actual Value as Actual Value as Set by Determined by Assessor Board O9526224 Deny - Denied in Full $4,400,000 O9526267 Deny - Denied in Full $2,200,000 O9532238 Deny - Denied in Full $124,317 $4,400,000 $2,200,000 $124,317 Totals: $6,724,317 3 Total Accounts $6,724,317 A denial of a petition, in whole or in part, by the Board of Equalization must be appealed within thirty (30) days of the date the denial is mailed to you. You must select only one of the following three (3) options for appeal: 1. Appeal to Board of Assessment Appeals: You have the right to appeal the County Board of Equalization's decision to the Colorado Board of Assessment Appeals. A hearing before that Board will be the last time you may present testimony or exhibits or other evidence, or call witnesses in support of your valuation. If the decision of the Board of Assessment Appeals is further appealed to the Court of Appeals pursuant to C.R.S. Section 39-8-108(2), only the record of proceedings from your hearing before the Board of Assessment Appeals and your legal brief are filed with the appellate court. All appeals to the Board of Assessment Appeals filed after August 10, 2016, MUST comply with the following provisions of C.R.S. Section 39-8-107(5): (5)(a)(I) On and after August 10, 2011, in addition to any other requirements under law, any petitioner appealing either a valuation of rent -producing commercial real property to the board of assessment appeals pursuant to section 39-8-108(1) or a denial of an abatement of taxes pursuant to section 39-10-114 shall provide to the county board of equalization or to the board of county commissioners of the county in the case of an abatement, and not to the board of assessment appeals, the following information, if applicable: (A) Actual annual rental income for two full years including the base year for the relevant property tax year; (B) Tenant reimbursements for two full years including the base year for the relevant property tax year; (C) Itemized expenses for two full years including the base year for the relevant property tax year; and (D) Rent roll data, including the name of any tenants, the address, unit, or suite number of the subject property, lease start and end dates, option terms, base rent, square footage leased, and vacant space for two full years including the base year for the relevant property tax year. (II) The petitioner shall provide the information required by subparagraph (I) of this paragraph (a) within ninety days after the appeal has been filed with the board of assessment appeals. (b)(I) The assessor, the county board of equalization, or the board of county commissioners of the county, as applicable, shall, upon request made by the petitioner, provide to a petitioner who has filed an appeal with the board of assessment appeals not more than ninety days after receipt of the petitioner's request, the following information: (A) All of the underlying data used by the county in calculating the value of the subject property that is being appealed, including the capitalization rate for such property; and (B) The names of any commercially available and copyrighted publications used in calculating the value of the subject property. (II) The party providing the information to the petitioner pursuant to subparagraph (I) of this paragraph (b) shall redact all confidential information contained therein. (c) If a petitioner fails to provide the information required by subparagraph (I) of paragraph (a) of this subsection (5) by the deadline specified in subparagraph (II) of said paragraph (a), the county may move the board of assessment appeals to compel disclosure and to issue appropriate sanctions for noncompliance with such order. The motion may be made directly by the county attorney and shall be accompanied by a certification that the county assessor or the county board of equalization has in good faith conferred or attempted to confer with such petitioner in an effort to obtain the information without action by the board of assessment appeals. If an order compelling disclosure is issued under this paragraph (c) and the petitioner fails to comply with such order, the board of assessment appeals may make such orders in regard to the noncompliance as are just and reasonable under the circumstances, including an order dismissing the action or the entry of a judgment by default against the petitioner. Interest due the taxpayer shall cease to accrue as of the date the order compelling disclosure is issued, and the accrual of interest shall resume as of the date the contested information has been provided by the taxpayer. Appeals to the Board of Assessment Appeals must be made on forms furnished by that Board, and must be mailed or delivered within thirty (30) days of the date the denial by the Board of Equalization is mailed to you. The address and telephone number of the Board of Assessment Appeals are: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, Colorado 80203 Telephone Number: 303-864-7710 Email: baa@state.co.us Fees for Appeal to the Board of Assessment Appeals: A taxpayer representing himself is not charged for the first two (2) appeals to the Board of Assessment Appeals. A taxpayer represented by an attorney or agent must pay a fee of $101.25 per appeal. OR 2. Appeal to District Court: You have the right to appeal the decision of the Board of Equalization to the District Court of the /county wherein your property is located: in this case that is Weld County District Court. A hearing before The District Court will be the last time you may present testimony or exhibits or other evidence, or call witnesses in support of your valuation. If the decision of the District Court is further appealed to the Court of Appeals pursuant to C.R.S. Section 39-8-108(1), the rules of Colorado appellate review and C.R.S. Section 24-4-106(9), govern the process. OR 3. Binding Arbitration: You have the right to submit your case to binding arbitration. If you choose this option, the arbitrator's decision is final and you have no further right to appeal your current valuation. C.R.S. Section 39-8-108.5 governs this process. The arbitration process involves the following: a. Select an Arbitrator: You must notify the Board of Equalization that you will pursue arbitration. You and the Board of Equalization will select an arbitrator from the official list of qualified people. If you cannot agree on an arbitrator, the District Court of the county in which the property is located (i.e., Weld) will select the arbitrator. b. Arbitration Hearing Procedure: Arbitration hearings are held within sixty (60) days from the date the arbitrator is selected, and are set by the arbitrator. Both you and the Board of Equalization are entitled to participate in the hearing. The hearing is informal. The arbitrator has the authority to issue subpoenas for witnesses, books, records documents and other evidence pertaining to the value of the property. The arbitrator also has the authority to administer oaths, and determine all questions of law and fact presented to him. The arbitration hearing may be confidential and closed to the public if you and the Board of Equalization agree. The arbitrator's decision must be delivered personally or by registered mail within ten (10) days of the arbitration hearing. c. Fees and Expenses: The arbitrator's fees and expenses are agreed upon by you and the Board of Equalization. In the case of residential real property, the fess may not exceed $150.00 per case. For cases other than residential real property, the arbitrator's total fees and expenses are agreed to by you and Board of Equalization, but are paid by the parties as ordered by the arbitrator. If you have questions concerning the above information, please call me at (970) 400-4226. Very truly yours, ezz,Le ctz4,r+d, Esther E. Gesick, Clerk to the Board Weld County Board of County Commissioners and Board of Equalization Cc: Christopher Woodruff, Weld County Assessor Weld County CHRISTOPHER M. WOODRUFF COUNTY ASSESSOR BRENDA► DONES DEPUTY ASSESSOR VALUATION REPORT OF PERSONAL PROPERTY FOR County Board of Equalization Frontier Drilling PETITIONER Vs. WELD COUNTY ASSESSOR'S OFFICE RESPONDENT Schedule Number: 09526224 +2 Log Number: Date: 8/3/2017 Time: 01:30 PM Board: Board #1 PREPARED BY Sean McElroy 08/02/17 Signature Date ASSESSOR'S OFFICE STAFF APPRAISER Personal property is everything that is the subject of ownership and that is not included in the term 'real property'. This includes machinery, equipment and other articles related to a commercial or industrial operation that are either affixed or not affixed to the real property. Drilling rigs are classified as personal property. Personal Property values shall be determined by appropriate consideration of the Cost Approach, Market Approach, and Income Approach to value. § 39-1-103(5)(a) C.R.S. Page 3.01 in the Colorado Assessor Reference Manual states For Colorado personal property assessment purposes, the actual value is the value in use, as installed. Colorado statutes require that personal property be valued inclusive of all costs incurred in acquisition and installation of the property. The costs of acquisition, installation, sales/use tax, and freight to the point of use must be considered in the personal property valuation. The inclusion of these costs requires that personal property be valued in use. Therefore, the actual value of personal property is based on its value in use. Furthermore page 3.19 of the Colorado Assessor Reference Manual states The assessor is appraising property at value in use not at liquidation value. ASSESSOR'S CURRENT VALUE Account # O9526224 O9526267 O9532238 Total Description Drilling Rig #8 Drilling Rig #10 Drilling Rig #4 Actual Value X4,400,000 S2,200,000 6500,000 57,100,000 Final Actual Value (prorated for days in Weld) S4,400,000 $2,200,000 $124,317 $6,724,317 ECONOMIC OUTLOOK US ECONOMIC CONDITIONS The US economy did expand in 2016 at a rate of 1.5 percent.' Personal income rose 3.3 percent during 20162. The unemployment rate also improved throughout 2016 ending in December at 4.7%.3 The following is an excerpt from the 2017 Economic Forecast for Metro Denver. The United States continued on an expansionary path through 2016 despite a slowdown in the first half of the year. The nation's businesses generated nearly 2.5 million jobs, the unemployment rate fell to 4.9 percent, and income continued to rise. Several states were impacted by the decline in energy prices with preliminary data suggesting seven states lost employment in 2016 including energy states such as Alaska, North Dakota, Oklahoma, West Virginia, and Wyoming. The size of employment gains differed greatly across states, ranging from -3.1 percent in Wyoming to +3.4 percent in Oregon. 2016 Colorado Business Economic Outlook. p. 6. CU Leeds School of Business University of Colorado Boulder Business Research Division 2 tbid, p 7 Bureau of Labor Statistics (accessed July 27, 2017): available from http: /www w.bls. goy 2 The price of oil is expected to rebound somewhat in 2017, averaging about $50 per barrel after falling dramatically to $30 per barrel in February 2016 from a recent peak of $106 per barrel in June 2014. The higher price will improve the oil and gas industry's operating position and support industry employment. Higher prices will also be reflected in the overall level of consumer prices as inflation increases modestly.4 COLORADO CONDITIONS The following is an excerpt from the 2016 Economic Forecast for Metro Denver. Colorado will likely be among the top 10 states for employment growth during 2016 and will post a 2.2 percent increase in employment in 2016. The employment base is expected to increase by 2.1 percent in 2017 and reach 2.65 million workers, representing the addition of 54,500 _jobs. The natural resources and construction, leisure and hospitality, and education and health services supersectors are expected to lead the state in employment growth through 2017. Personal income growth slowed in 2016 but will increase to 5 percent in 2017 due to increasing wages, rising housing prices, higher transfer payments, and increased investment. Low unemployment and rising personal income bode well for consumer spending in 2017. Retail trade sales increased by about 3.8 percent in 2016, reflecting a pullback in the first half of the year and a slower rate than 2015. However, retail trade sales are expected to increase at a faster pace of 4.6 percent in 2017. Colorado's expanding employment base, quality of life, and increasing presence in the global business community continue to attract individuals and businesses to the state. 5 INDUSTRY CONDITIONS The oil and gas industry has seen a large downturn in activity mostly due to the slide of the price of oil from averaging $93.13 a barrel in 2014 to averaging $43.23 a barrel in 2016. Average WTI Price $120.00 $100.00 $80.00 $60.00 $40.00 $20.00 $0.00 2012 2O13 2O14 2O15 2O16 Average WTI Price $95.05 $97.94 $93.13 $49.79 $43.23 2017 Economic Forecast for Metro Denver. p. i. Denver Metro Chamber of Commerce. 5 2017 Economic Forecast for Metro Denver. p. i. Denver Metro Chamber of Commerce. 3 The number of rigs operating in the Colorado has fallen as a result of the downturn. Average Number of Operating Rigs 80 60 40 20 0 2012 2013 2014 2015 2016 The decrease in oil price has resulted in a reduction in the number of new wells drilled in Weld County for 2016, 669 down from 1084 in 2015. 2000 1500 1000 500 0 Well Starts Per Year 1457 1560 1311 1084 9 2012 2013 2014 2015 2016 ECONOMIC SUMMARY The oil and gas industry has seen a large drawback due to the sharp decline of crude prices. Drilling rigs have been shut down and stacked, resulting in liquidation sales and lower valuations. Economic adjustments have been taken into consideration for this appraisal. 4 HISTORY OF SUBJECT PROPERTY Below is an excerpt from Frontiers website. Formed on April 12, 2005 by Mac McAlister, Frontier Drilling is a private land drilling contractor headquartered in Denver, Colorado and Oklahoma City, Oklahoma. Operating predominantly in the Rocky Mountain region, Frontier has become a reputable benchmark in the drilling industry. Dedicated to provide the best quality drilling service to its operators, Frontier Drilling firmly believes in: • Hiring and training highly qualified rig crew's. • Upholding the highest safety principles. • Providing and maintaining the finest quality drilling equipment • Setting exceptionally high expectations for performance and integrity. By utilizing a state of the art and well maintained rig fleet, Frontier's dedicated and experienced personnel are trained to meet any operational challenge that may arise in the field. Frontier Drilling is committed to providing quality service and value to the U.S. land drilling market.' 6 Frontier Drilling (accessed July 27, 2017): http:i frontierdriiling.net/the-company 5 COST APPROACH NARRATIVE The Colorado Division of Property Taxation (DPT) publishes tables that are used in the cost approach to establish value. The Weld County Assessor has used the Hadco table of established replacement cost new (RCN) values to establish a RCN. An economic life for the equipment is determined and an age for the equipment is calculated. With an economic life and an age determined for the equipment, a percent good is applied to the RCN value for the equipment to find the replacement cost new less depreciation (RCNLD) value. A level of value (LOV) is then applied to the RCNLD to reach the actual value for the equipment. The LOY is used because §C.R.S. 39-1-104(12.3)(a)(I) requires personal property to be adjusted to the June 30 appraisal date. The DPT tables have been attached to this report. The economic life tables are developed from the IRS, Marshall Valuation Services and other sources. The percent good tables are assembled from the Iowa State University property retirement & depreciation studies. The minimum value on the general percent good table is 15 because Colorado is a value in use state. This means that nothing is ever fully depreciated as long as it is in use. For technologically advanced personal property the floor value is 7%. After this the Assessor is required to apply any economic obsolescence that exists. We determined that economic obsolescence did exist in the oil & gas drilling/service industry. We determined that the appropriate adjustment for economic obsolescence was an additional 41% reduction. Finally W.R.S. 39-5-113,3(2) requires that drilling rig actual values be prorated for the number of days that they are located within the county. Below are two tables showing how the cost value was determined. Account. Rig it Depth RCN Year Acquired Percent Good Obsolescence Economic RCNLD O9526224 8 18000 $18,000,000 2010 42% -41% $4,460,400 O9526267 10 18000 $18,000,000 2010 42% -41 % $4,460,400 O9532238 4 12500 $8,500,000 2010 42% -41% $2,106,300 Total $42,500,000 $11,027,100 Account Rig # RCNLD Rollback June 2016 30, to ctual OPaluAl Days In Prorated Actual Value 2017 Actual Value Final Weld O9526224 8 $4,460,400 1 $4,460,400 365 $4,460,400 $4,460,400 O9526267 10 $4,460,400 1 $4,460,400 365 $4,460,400 $4,460,400 O9532238 4 $2,106,300 1 $2,106,300 91 $525,132 $525,132 Total $11,027,100 $11,027,100 $9,445,932 CosT APPROACH VALUE $9,445,932 6 MARKET APPROACH Pursuantto the Colorado Revised Statutes the Assessor has considered the Market Approach. This approach is an appraisal technique in which the market value estimate is predicated upon prices being paid in the actual market. It is a process of correlation and analysis of similar recently sold properties. The reliability of this technique is dependent upon: 1. The degree of comparability of each property with the property under appraisal;. 2. The time of the sale; 3. The verification of the sale data; 4. The absence of unusual conditions affecting the sale. The market derived fourth quarter of 2016 tables published by Hadco International LLC were used, they are attached to this report. This table is derived from sales of drilling rigs that occurred in the fourth quarter of 2016. Three pieces of information are required to value the rigs with this market table, the depth capacity for the rig, the overall condition of the rig and if the rig has a top drive and other automation equipment or not. The rated depth capacity of the rig was provided by Frontier Drilling for each rig. The following information was used to determine the value of the rig by condition. Good Operating condition is 100%. No known or obvious mechanical defects, but the rig may have some minor worn parts that will need repair or replacement in the near future. May have high hours of use, but no defects are obvious. Fair Has very high hours, indicating extended use. Defects are obvious and will require repair or general rebuilding soon. Not 100% functional or efficient, rigs may be operational or functional, but questionable as to how long this will continue. Also if the rig was stacked for the entire time during 2016 it was in Colorado it was rated as Fair. Whether or not the rig had a top drive and other automation equipment was provided by Frontier Drilling for each rig. With this information a value can be picked from the Hadco market tables for the rig. The Hadco market tables do not include the valuation of a top drive and associated automation. This is an additional add on to the value for rigs with a top drive. Once a value has been derived from the market approach a level of value (LOV) is then applied to the market value to reach the actual value for the equipment. The LOV is used because '. . . 39-1-104(12.3)(a)(I) requires personal property to be adjusted to the June 30 appraisal date. Finally §C.R.S. 39-5-113.3(2) requires that drilling rig actual values be prorated for the number of days that they are located within the county. Below are two tables showing how the market values were reached for each of Frontier Drilling's rigs. Account Rig 11 Depth Condition Top Drive Hadco Value Top Drive Add On Total Market Value O9526224 8 18000 Good Yes $3,900,000 $500,000 $4,400,000 O9526267 10 18000 Fair Yes $1,700,000 $500,000 $2,200,000 09532238 4 12500 Fair No $500,000 $0 $500,000 Total $7,100,000 Account Ric' # Total Market Value Rollback June 2016 to 30, Actual Value Days In Weld Prorated Actual Value 2017 Final Actual Value 09526224 8 $4,400,000 1 $4,400,000 365 $4,400,000 $4,400,000 O9526267 10 $2,200,000 1 $2,200,000 365 $2,200,000 $2,200,000 09532238 4 $500,000 I $500,000 91 $124,317 $124,317 Total $7,100,000 $7,100,000 $6,724,317 The values on these accounts were originally derived from the information filed on the 2017 Oil and Gas Rotary Drilling Rig Declarations. Economic obsolescence does not need to be further deducted from the market approach because it is inherent in the sales from which the values are derived. Overall the rig values for these rigs decreased 43% from 2014 to 2015 and an additional 10% from 2015 to 2016. MARKET APPROACH VALUE $6,724,317 INCOME APPROACH Pursuant to the Colorado Revised Statutes the Assessor has considered the Income Approach to value on Personal Property. This approachconsiders value in relation to the present worth of future benefits derived from ownership and is usually measured through capitalization of a specified level of income. This approach is the least common approach used in the valuation of machinery and equipment, since it is difficult to isolate income attributable to such assets from the income attributable to the services received from the assets. Drilling rigs are one of the few assets that the income can be isolated to assets and not the services received from the assets. Due to the day rate and daily expenses not being provided for these rigs, the Weld County Assessor has not derived a value using the Income Approach. 8 CONCLUSION The subject property has been classified as Personal Property for property tax purposes. Personal Property values shall be determined by appropriate consideration of the Cost Approach, Market Approach, and Income Approach to value. §39-1-103(5)(a) C.R.S. The Assessor reviewed the Cost, Market and Income approach to value and selected the Market Approach as the most accurate method for determining the value. After consideration of the three approaches, it is the Weld County Assessor's request that the value be set at $6,724,317 for the tax year 2017. FINAL VALUE Account # Description Current Value Cost Value Market Value Recommended Value 09526224 Drilling Rig #8 $4,400,000 $4,460,400 $4,400,000 $4,400,000 09526267 Drilling Rig #10 $2,200,000 $4,460,400 $2,200,000 $2,200,000 O9532238 Drilling Rig #4 $124,317 $525,132 $124,317 $124,317 $6,724,317 $9,445,932 $6,724,317 $6,724,317 Total 412 ADDENDUM 4-C, ECONOMIC LIFE ESTIMATES CONTINUED... ReCGMBI elided PROPERTY TYPE ECM° 1 i I'e Life (gears) CO IER:L .L (continued) . Rim Rafts 1 Slang cam 5 Sips. (billboard mid monument) 2 0 Sigcs Oda' 1a Sli (electronic) 6 . Si.now Ca.: ff. additional ftn n t (e.g., snow -griming opera Sus) 6 Heavyuse Modern use. (q. Unsportaitaoperations) 1 Swap iamb: above Land, propene., septic) 10 iwnI'ks (e.g,„ Tanks (Gt iie below io thL' clouble-walled, fuel) 20 -releconmicannaperstaira party: Hip Tech Oath hiding towers) 4.6 'Theater 1 Tames 2 & Typewriters 6 Vending orbmarbii Hies 1 a V9des" Mar hi' (rade) I 6 NATURAL ?- 0 Miming -Metallic meiN t AIT dng1iThes,. cranes (with 50+ w. lift -. capacity) 2 Of Electric minixig shovels I 15 I 0 IL :- mining,I mining l ingr T�" 10 n Gas I ,��ap' �I atVainual Drilling 6 drilling rigs 10! Fithetedmology ou (axchidfr, pipelines) 14 INA: m and \ Monceau& IlliRil 1 9 1' 1 hln r (mot 10 otherwise listed) 16 Rpifining . limber Log' 6 Sawmills, pennanent 1& Sills. portable 6 * Use approprian talutologically adterniced comptaisr prong good Able. i7-AS-DPT ARLVOL 5 249 Rev i-D 10 4■14 ADDENDUM 4 GENERAL PERCENT GOOD TABLES 2017 GENERAL PERC'E' ' COO]) TABLE Average Economic Life in Years 3 4 5 6 7 g 9 10 11 U 13 14 15 16 17 18 19 20 68 76 81 25 gg 90 91 92. 93 94 95 95 96 96 97 97 97 97 38 53 63 70 75 79 22 84 26 88 89 90 91 92 93 94 94 95 1_7 33 46 55. 68 72 76 79 81 83.5 87 88 89 90 91 L. .5 18 30 41 50 57 453 67 71 75 77 80 82 84 85 86 88 E9 l IN a A ge 1.5 18 9 3 8 4 7 53 .59 64 68 71. 74 77 79 81 83 84 86 82 15 19 37 44 5 + 56 6. 1 65 6.8 71 74 77 79 80 15 20 28 36 42 49 54 59 63 66 69 72. 75 77 79 15 20 28 35 42 47 52 57 61 64 67 70 73 75 15 2:, 2.g 34 40 4.46 51 55 59 62 66 69 71 .5 22, 28 35 39 45 49 55 58 61 65 68 1.5 22 28 34 40 45 49 52 57 61 64 18 23 28 34 39 44 e' 47 52 57 60 15 20 2 e I 30 34 39 42 i 48 52 I 56 15 21 25 30 33 7.8. e1.. 52 r 16 19 25 31 35 40 44 48 _: 17 18 19 20 21 22 23 24.. 25 15 1- 20 26.. 31 36 0 44 15 I 19 22 7 I/ 31 36 15 21 23 27 32 36 I 17 19 I 24 \\ I 8 1 32 15 15 '0 25 29 17 22 26 15 19 23 16 20 15 18 16 25 15 S .D: Division of Property Taxation .7 -A5 -OPT Alit VOL 5 2-69 Rar 1-17 Rate Applied: g3% 11 4.16 ADDENDUM 4-E, LEVEL OF VALUE FACTORS 17 ONAL PROPERTY rLO FACTOR TABLE June 30.,1016 Len i € f Value Indusby Category. Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Fixtures Leasehold s LOA- Factor 1.00 1.00 1.00 1.00 1.00 1_OG 1.00 1.00 1_Do 1.00 1.00 1.00 1.00 1.00 1.00 Sc..: Divuion cifProperty Ination and Mar -hall V on Set a 17 ARL VOL 5 2 '1-17 12 Babio (iittentatizi LEL "RC The eitfietb AppraSer EQUIPMENT NEWSLETTER P O1 Ecv: i =�a; : • iron' r e. Isms, • 772.01; ' F -ions:. r9343l 750-1221) - Fax* (.9261 7831:71-e 121 I . _Lie r. a i 1. FOURTH QUARTER 2016 PRICE INIDEX UPDATES 41.11 QUARTER RIG COUNTS RISING / QUARTERLY MARKET COMMENTS OUTLOOK FOR 1ST QUARTER 2017 EQUIPMENT PRICES MARKET INDEX) INDICATORS 4T" QUARTER 2018 WTI I NYM EX C RUDE OIL PRICE RANGE, Ibbl LOW —HIGH 03.29—$5.4401 Henry Hub / NYMEX NATURAL PRICES RANGE, WM = TU OAS LOW -HIGH S2.08 -53-S0 LAND FROM DRILLING RIG UTILIZATION PLATTS RIWWATA - SITH QTR 21% 694 ACTIVE DRILLING RIG SALES SLOW T QTR 201€ PRICE INDEX CHANGE r -$11.0% f°QTR 2U1fi PRICE INDEX CHA N G E I % 3 Q7R 20143 PRICE INDEX CHANGE 0% elan 2016 PRICE INDEX CHANGE '_ -1.9% lar QTR 2017 DRILLING RIG OUTLOOK 2.5% FORECAST SERV WELL CE PIG €ERVI UTILLZA11O1 EI MF3 MAGAZINE A (AVG) agate 01,111 ACTIVE E I ALES '` SLOW 1 n C TIR 2016 PRICE INDEX CHANGE 40% 2 etTR 2016 PR CE. INDEX CHANCE ; -is e QTR 2016 PRICE INDEX CHANGE —el L5% Qtr -R 2016 PRICE INDEX CHANGE 0 _ ,1s r QTR 2017 SERVICE RIG OUTLOOK x 6% FORECAST '-rM QTR USED DRILL COLLAR. INDEX 5% 4T" QTR NEW DRILL COLLAR INDEX i 10% _ 4TM QTR USED DRILL PIPE MDEX �' 5% 4 (QTR. NEW DRILL PIPE INDEX 10% PRoDuatom EOIIIFMErTT SALES SLOW i 2 "{-' HALF 2016 PRODUCTION EQUIPMENT PRICE INDEX ' 0% 1 P' HALF 2017 PRODUCTION EQUIPMENT PRICE INDEX El _ t' HALF 2017 PRODUCTION- EQUIPMENT PRICE I FLDEX `' 5% FORECAST OVERALL MARKET ET CONFIDENCE r IMPROVING OVERALL INVESTOR CONFIDENCE IMPROVING 1 4T" QUARTER 2016 OIL OUTLOOK DRILLING RIG & EQUIPMENT PRICES, CONTINUED SIGNS OF STABILIZATION 4T" QUARTER 2015 MARKET COMMENTS The fourth guar -her closed and realized a positive increase- in rig utilization rates for the domestic market. I rlturnational markets appear to be showing similar positive trends as orders for International rigs and related equipment continue to slightly ir1 OreAge . 'L Rig awl equipment prices. appear to be an the neutral side: even though utilization is experiencing a more positive trend. IVIDSI oilfidd related miquipmerit velum continue to maintain stabilized rates. Well service rigs had no change in value for the fourth quarter. Market inr! its along with trends, values, and rates, appear tc show only minima' decline WLth indications that the industry is trjilg to recover. 1.T QUARTER 2017 FORECAST The 4th quarter continued the trend from the p nevi ous quarter. We expect the market to react with more positive movement next quarter. We maintain n the expectation of continued stabilization across all of the types of oilfield equipment assets in the near future. The first quarter should start trending upwards with continued positive movement th re iq hcut the remainder of 2017_ ii FIRST QUARTER 2016 DRILLING RIG PRICE INDEX P'tir cntagti or ChenChenge iron prewious Quarter DRILLING RATING PAIR GOODS VERY GOOD EXCELLENT AVERAGE UP TO 25C0 -14.9% -15.0% -15.0% -1 0% -15.0% 2501 10 5000 -15.0% -15.0% -15.0% -15.0% -15.0 5031 TO 7500 -15.0% -15.O'4 -15.0% -15.0% -14.0% 751Y T O 1 COM -15.0% -15.0% -15.0% -15.0% -15.0T., 10101 TO 12530 -15.0% -15.0% 16.0% 15.0% 1E.0% 12501 TO 15030 -15.0% -15.0% -15.0% -1E.O% -1E.0% 15001 TO 17 530 6 Cin -6-0% -E.o% -6.013-it -5.0% 17501 70 20 030 -h 4x% -5.0% -5.0% -5.0% -,5.0% OVER 20000 -15.0% -15.0% -15.0% -15.0% -15.0% All Average -93% -'1{x.2% w10.9% -11,0% -11,0% SECOND QUARTER 2016 DRILLING RIG PRICE INDEX Per cen-age of Change Thorn PreleituS 1 Jart a r DRILUNG RATING PAIR Gaon VERY GOOD EXCELLENT AVERAGE LIP 1`O 2%o C.0% O M% 0.0% 0.0% 0.0% 2 501 TO 5300 C.0% 0.0% 0.0% 0.0% 0.0% 5001 70 7500 C.0% 0.0% i 0.0% 0.D% 0.0% 75,31 TO a 00•0 C.0% I 0.0% 0.0% 0.0% 0.0% 1 o ao1 to 12606 0.0% C,O% O." '1 0.014 0.0% 12501 TO 15000 0.0% 0.0% 0.0% 0.0% 0.0% 150001 TO 17500 0'.0% 0.0% I 0,0% 0.0% 0.0% 17501 TO 20000 0.0% 0.0% 0.0% 0.0% 0.0% OVER 20G00 0.0% 0.M 0.0% 0.0% 0.0% All Menage 0.0% OM% 0,0% Cr0 4 0.0% THIRD QUARTER 2016 DRILLING RIG PRICE INDEX Ptirccri tsge i I Orange f eon previous Quarter DRILLING RATING FAIR GOOD VERY GOOD DX ELL ENT AVERAGE OF T02503 503 0.0% 0.3% 0.3% 0.0% 0.0% 2501 TO 5000 0.0% 0.3% 0.3% 0.D% 0.3% 0.0% 0.3% 0.3% 0.0% 5001 TO 7500 0.1% 7 501 TO 101000 0.3% 0.5% 0.3% 0.0% 0.0% 10[91 TO 12503 0.3% 0.5% 0.3% 0.0% 0.' 12.501 TO 15003 0.31*, 0.3% 0.0% 0.0% 0. I% a 4% 0.0% 15001 T017'503 0.3% 0.3% 0.1% 1750110 20005 0.3% 0.5% 0.0% Q. Ie 1 0.1% OVER 200CCI 0.3% 3.0% 0.0% 0.0% 0.C.% All Averag a I I.A% 0.0% 0,0% Os' D_4% FOURTH QUARTER 2016 DRILLING RIG PRICE INDEX Per c Rnta a of Chance from pr riitu Quar-eit DRILLING RATING FAIR GOOD VERY GOOD EXCELLENT A' Ef AU E Up t ■ 2503' -10.til' a -1 r:I c;'%�e'.1:-- - .1, �� n -, .Z. ib 250j1 to 50D3' -12.5% '. 5a4.. -i� 'a•� - -5.0% -6.8% r 1 50 to /5 Va` �i -1 1 a ; ) ''t}! -.5 '.1 r., n Ft -., :;. r1 pi ' -..�. -.tip 2d 7501' tc 10000' -1 9.8% -3.7% -71.6%. 4.8% -6.er.t, 1 I)Qll e1' rn 12530' -16.O% -43% -2 D%. -5.9% -.r.3'eu 12501' kg 1500' 0' -11.5% -+ .4 -1.6 isca - -i . _i -in �` " -12:6 i 1 15011.1' to 17530' -2. a'-'1) -3.3% -2.4% -1.3% -211% i 17501' to 20030' -5. L15•1 -2.3% -1.5'6 -0.6% -1.7% Q'uer 200CC)' -11. :*: U -3.5% -2.0%. -1.60 { -2.8% Al Aware -sem -3_2% -2.3% -2.1% -2.9% ri r,te—AIR average in red is reflected by the dRta Qn p_3 14 QUARTERLY DRILLING RIG PRICE CHANGE INDEX BY DEPTH' AND CONDITION, ROHM DEEP BY QUARTER IN LIS DOLLARS (THOUSANDS) DEPTH RATING FAIR GOOD V GOOD EXCELLENT ALL AVG LIP 70 2500 1016 72.3 97 5 19e.3 -2V.5��.5� 104.7 2Q15 72.3 07 9 19 r . 3 2r.5 164.7 3Q16 72.3 97 9 19, .3 2Q7.5 16-4.7 4Q1 B 6'5.1 38.0 175.3 202.6 152.9 2601 TO 5000 1 115 85.0 610,0 605.0 377.2 2016 85.0 510.0 595.0 377.2 3016 85.0 5 f 0.0 595.0 377.2 4Q16 74.4 469.2 565.3 351.7 313.8 318.6 31&.8 290.1 5001 TO 7500 10°6 225.3 510.0 637.5 1105.0 31:3.4 2 r a 225.3 510 0 637.5 1105.0 51'1.4 4.'6 225.3 510.0 637.5 11 .0 310.4 4016 202. a 450.0 621.G 1096.3 507 4 7501 TO 10000' 1016 374.0 925.0 1190.0 1765.0 1071.0 2016 374.G 025.0 1190.0 1785,0 1071.0 3Q16 374.0 925.0 115320.0 1785.0 1071.0 01Q16 300.0 900.0 1100.0 1700.0 1000.0 10OD1 TO 12500 1016 2Q16 3O16 40.16. 595.0 595.0 505.0 500.0 17'05.0 1785.0 1785.0 1700.0 2550.0 2550.0 2550.0 2500.0 3L100.0 3400.0 3400.0 3200.0 2C82.5 2ca2.5 X02.5 1G75.0 125101 TO 15O0Q KM 1130.5 3145.0 4155.0 5525 0 2491.4 2010 1130.5 3145.0 418.5.0 5525 00 3491.4 3016 1130.5 3149.0 4165 0 5525 0 21191.4 4016 1000.0 3100D 4100.0 400 0 2400.0 15001 TO 17500 1 a 1m 1330.0 5225.0 7600.C 4441.3 2016 1330.0 5225.0 70.3.0 4441.3 301;:i 1330.0 5225.0 7 6e3. 0 0441.3 16 1300.0 5100.0 7500.C 4350.0 36100 3610.0 72,610.C 3500.0 17501 TO 20000 101'6 1805.0 3990.3 53920.0 B550 I I 5068.8 201e 1805.0 0990.0 5890.0 855011 505.0 3016 1805.0 3990.3 50.90.0 8550.a 505813 4Q16 1700.0 3900.3 .58.00.0 8530.0 £97 5.0 OVER 20000 1016 2016- 3016 4016 ALL AVE RAGE 1016 2016 3C16 40167 1430.11 1360.0 1360.0 1200.0 775.2 775.2 775.2 M 7 ?a15.00 3315.0 3315.0 3200.0 1967.4 1f$74 1Q67.4 1105 0 3 .51002.0 5100.0 5100.0 5000.0 262b.8 26268 7828 3 2 i5a a7330.0 8330.0 83.30cI 8200.0 4131.9 4131.9 4131.9 400.0 4526.3 4525.3 4526.S 4400.0 2425.8 2425.8 2.425.8 2351.7 15 ERNE YEAR DRILLING RIG PRICE CHANGE BY DEPTH AND CONDITION, ROUNDED BY QUARTER IN US DOLLARS (THOUSANDS DEPTH. RATING FAIR UP TO 2500 40'" 5 40.'6 2501 TO 5000 4Q 5 4010 1&1 TO 7&Ki 4016 4Q16' 7501 TO 10000 4Q15 4018 10001 TO 12500 4Q11� 4216 12501 TO 15000 4015 4Q16 155001 TO 17500 LQ15 LQ 16 17501 TO 20900 L O15 £ 016 OVER 20000 401,5 41.5 ALL AVERAGE 4Q15 41.115 GOOD VERY GOOD 5 1+5 65 8B 100 370 290 25 176 600 t59 EXCELLENT AVERAGE 35C 3.51 7C0 565 1 t V 444 35.2 2S5 B0ta 75) 1300 729 03 459 822 106.9 527 440 1100 1400 2100 1250 300 COD 1100 1700 1000 70D 2100 3000 4C00 2450 .90D 1700 2500 3200 1975 1330 3700 4900 6 ID 41138 1000 3100 4100 5400 34IC;• J,40C 1300 s 5500 OLEO 4675 5100 7530 4350 1900 42D0 6200 BOOO 5325 1700 ',nut) 5RB0 B5C0 4975 1600 3900 r3000 LOCO 532E 1200 2200 5000 8260 4400 669 (C5 SPECIAL NOTE - RIGS IN P RARELY HAS 2210 1.905 31175 2763 469 4046 2723 2355 MIPITION, NOT MAPsemi OF WORKING, USUALLY MIesIr'liS Fs1P.JUR COMPONENTS, k, -GENERAL, POOR coMIa1TI vii P VEFa AU ES AWOL" I 'Jo% OF THE FAIR CONDITION RATING, SHORT TERM OUTLOOK FOR OIL & GAS Saudi Arabia, Iraq, .an i Inn Living OPEC's Iiirtlsat producers. accounting far a bz ut 55 per cent cif file uu1p ut, aocorc ing Bloomberg ci .Iectt d da Is . This woo major players that pose :he l i r gnat obsta- cla seam 1a be the. topic or discussion Letween OPEC a id 9ussi a. several efforts ire working to close a deal to cut p~rad ud iorL w ri d come to an agreement by the November 300.1 rnssli ng between OE PC members. Saudi 11xal.,i , Iraq, and Iran are strrugg1 inq to cone to terns on huh to s lace output cuts. The moist recent atterraptis til di p10rnac9 proves the d iffic'u ty OPEC Rams to flr Ia li tha deal 4 ire -ached in Algiers on Sept. 28, which would bring the "c≥ rn pi n without limits' try} -year policy to an end. Leng 1y discussions were unsuccessful in o'iercc m ing internal disagreements, which in turn prevented a sslra ralQ ag ree rn orlt with ei Dn•O F'EC producers. This siticialion also inch ales there rr aj be a fourth oonsecut vs velar in oversupply in 2017. Breit caide price arrived at a onemyrear high 0 Ric:e the initial consen$uus announcement Tint was released torn OPEC to reduce. production. but has s rice fall- en as doubts rise -ever the' closing of the deal whish proves uncertain. ahe r e lut on is impatiently an - 16 r ONE YEAR DRILLING RIG PRICE CHANGE BY DEPTH iN D CONDITION,. ROUNDED BY QUARTER IN US DOLLARS I:THOU SANDS) SHORT TERM OUTLOOK FOR OIL 8 GAS ; C- ,13tirriic Ertl p. t: vi pated and we ahted dec ie I0' I4 a to i 'i a ne rI u ing status urtil cc rifirir- at or.r= are �Ik a i . OPEC also pledg ad to d rr~ i i soli its pr- xiut ion a range / 32 5 niiilicar b bl&da ;,r: v h ;i, cDm pares with the autpi l eslirnate irnate c' 33 6 million bbI s rcrh y Iasi month There is also predict : cu t par- ati b n from Russia arid of be r rl on -r marl L _• u : (even thot_igh none "lave earrirri:t•_J this po Sources reveal That 'spatial .Loriside -a'. Drib' 13 e been L x e sce ':o Li cy'a. N 914.tria. and I ra l tai rn ple- n- eni the Algiers acy Ge rent. It is a so roted that I Irac is not a,m ctI'ci thenr`1e rn berg, Arabia, is rV N vy cut prad i.x- on but only if the ag ree rn ant recd nines some requests. AD mere bers 'ri it st agree lc co lective action, pledge to share the hu -den of reduc'tic r s in oa rt al yr aid d..", so in a tr3rs<areit art credible rranier It belt -mated that Saudi Arabia thin is Iraq shald a ld r;c]nsider ct. tti rg output As well as Irar r shoo ci cis CL r nay D t :] ,� ; ar zont rnue. prod .,r "tic r a rY . r d current levels which nei tF' er zaciefrj has agreed !o these tzirri s th d r '+'fir tt regardz to Libya • r c N ;eria , the r procuction is _•ti I feccateriec after cse `i a s of tir i oI o tit and ra it itar7 : inf fc stra.rcture at La C I s 17 DRILLING RIGS PRICE INDEX AVERAGE PRICE CHANGE ALL I PGS AVG CHANGE Li itam :rVI ^ JS QUARTER YEAR 1ST QTR 21,4D QTR 3RO 0TFR 4TH QTR 70•31 a 6% 2.3% 2.6% -J.: % 2002 2.0% 4.0% =i..$'' r =2.'r% 2003 ' 1.4% .:.8% 31% 3 2% 2304 0.5% 4.9% 2.3% 4. 2 305 4.5% 2■ :.1 .4% 13.i5 2 305 52% 2.7% 1 7% 2.3% it r .5% 1.1% 1 a% 3.2% 2.008 6.c% .4.9 Ea : -c 7% I 2009 : 1 % -S. r _ F '' 11' -4 2 % 2010 -3.1% • 0.5% 2.0% 4.1% 2011 2 6% 54% 5.1% 5.2% 2012 1.1% -0 3% I.7% -1 jch 1 21M a -0.8" !' 0.0% 0.0% 0.i% 2014 o.0% 0.0% 1 0.0% -2.3% 2016 r -'- Lea -22.4w. -14 6% -11.2% 2016 I -11.0% O,0% 080% -2.97a WELL SERVICE.RIGS RIG S PRICE INDEX AVERAGE PRICE CHANGE ALL RIGS AVG CHANCE FRO re PREVIOUS QUARTER YEAR 1ST QTR ZINC* QTR 3RD QTR 4TH CiR 2001 8.0■�y% 9 5% r� .0% 2.0% 2002 a2 2% 2.C% % I J 1 .:S 1 1% 2003 2.5% 1. C% 1.1% 2 .f..% 2004 1.5% 2. I% 2 0% 2 4%f 2005 3.5% 2.5% 3.0% ,0 5% 20M3 _ 6.5'Y�'�1J.7j .3.51it C% 2.5% 2037 3.5% 1.5% 2.0% 3. 2008 2 5% -3.0% 3.6143 1.5% 200.0% -4.5% -3.5% 2010 -2.1% -1.0% 3.5% .3.5% 2011 3.0% 4.55 4.0% 3.0% 2012 2.5{/a 2.0% 1.5% 2.0% 2013 2.0r , 2.12 2.0% 1.0% '8314 1.0% u. _ 0.0% -1.0% 2015 -8.0% -15.Q% 15.0% -15.D 0% 2.5% 2016 AI 1:1_041,4; 40% PRICES OF NEVV DRILLING RIGS ROUNDED REPLACEMENT COST NM Weill AVG CHANCE FROM PR EVIOL,S QUARTER DEPTH RATINGS RCN PRICE RANGE SbO::1.OI](I S1, 000,0000 LIP TO 2,,500 FT 2,.541 TO 5,000 FT S1 ,C.%00:000 S{ , 540 ,004 5,001 TO 7,500 FT 51.500,000 S2,500; 000 7.541 TO 1 C ,C 03 FT $3:000,00 54.(104, 440 1C,001 TO 12,50C IT $5, 500,00 Se,500,0D0 12.501 TO 15,040 FT $0:0011,000 $111100.000 15,001 TO 1 T',E00 FT 3' 1,500,400 513.000,004 17.501 TO 30,000 Fr S , 3, 500 ,4in $17, 000 NU 517, 500.00ti 110, 000 ,400 2C.001 TO 25,04 -f 520,000.400 $24, O0C,000 EYitfl 25,000 l Stite.d.this gatwter. Froees do mite rt art disc or cd0c Pries do not include. drill lanicascam�honowitio tools., cap .rs, from roonfra.;''- k$ corMrfrti`r�i:�s or ratting stem PRODUCTION EQUIPMENT PRICE IaNDIEX FORECAST 1ST HALF 2017 PERIOD % CHANGE INDEX 2NJ HAL F 02 1 HAL F 03 2:1) HALF 03 in -HALF 04 Zit FALF 04 -11-1-• F Q! ,LAND HALF- 05 1's' HALF 0S 2ND HALF 06 187 HALF' 07 2" HALF 37 1 S HALF fie 2N)HALF 08 1;}r HALF 09 r I ALF 08 1T HALF 10 HALF 10 1T HALF 11 a" I -IA LF 1 e' I air HALF 12 2ND HALF 12 151 HAI F 13 2 -iAL1- 1; 1 tr .-IALF 14 2 rar. HALF 14 1 ST HALF + 5 2'1" HALF r 5 1 sT HALF '6 2itic HALF '6 1 T HALF 1? 5 50% BASE -5, f_x1% 0 0.9,50 7.50% 1.021 2 5:114, 1 1147 .' CIAPS 2.50% 1.161 4.50% 4,00% 1.207 3.50% 1.0 3.0e% 3.0C% 1.267 1.325 5.00% 1.391 3.5C% 1.440 -10.5% 1.250 i .00% 1.199 163 1,227 5.004= 1.288 4.50% '1.246 2.003S .1 t. , Sr, w�i 2.5o 'r 1 407 1.50% O.5011 0.50% 1 428 1435 1.412 -G. SO% -20.0% 1.cu5 1.14E -30.0% -15.0% .t 0 L. � I;�r LI 0 i0% 5.00% 0.804 0.683 _ 0.080 0.717 Reasons for an Appraisal 1. :_ 3_ 4. 5. 6. 8. 9. Buying or selling rigs. equi annert complete cowponies. Mergers or acquisitions of companies. Banking and financing. Establishing insurance loss r in 5urabla value Providing input for investment analysis far investor groups. T.2X appqaal A and establishing FsxaL�lr values. Allocations of value for book adj us-riierits .at(2rs81e5 are completed. Establishing wil ties for lawsuits involving rig end equipment values. Establishing asset to stock val IJE reins or 1(1_ Asst A.p praia,+als used for stockholder and investor ropes its. 18 USED DRILL COLLAR MARKET INDEX UPDATED FOR 411' QUARTER 2M1$ PRE'4II tiM LDS E1 °■ I CIS PECTED I,RICEet ROUE CED SIZE 1016 2016 3016 4(21 6 . 128 125 '04 1L1 L• '4' I 1d0 1 • ' ,,.L 2",7 _ RIZ 151 - rt '4' 256 25a 284 303 L W '275 275 21. 2�.: 0 3 1.2.C1.2.C7 32D f 0+' 4 r$ ,2C 3 Fs-55 5 L 4"' 522 54-6 '1 1' 197 .10 L4C 537 41011 514 Ge 4 ni 847 547 6x2 7'13 S' 860 3E0 714 7 F. !II' 899 737 731 5"II ' 77R ;7 818 656 E" 912 I W 2 15e35 1 no; 1,C iiii 9 'A' 901 El ker 5 '' 1,1'1 1.111 1.16f 1,221 3 T4' 1,244 1,24E 1 335 1,372 (1 1,4/C 1 1,175 1 55) 1.627 7 '4" 1,5e4 1,Y 4 r •553 1,716 T,,' 1,EM 1,553 '_333 1,710 2,377 7 ' 2,1 2,1 b3 2 6r 7.eJ 2.1353 2 (86 2,92u 5 /I 2,72C 2,72,E 2.953 2 999 . 8 _ 2,2 2,802 2 Z 3,C:53 ON U62. 2.652 2 is &,1 L4 E" 2,E1: 2,:12 '3 5 3216 9 1.4" 3,085 3.085 3 .x•33 3,4.1 A 'IF 'I,5115 5.515 . :I2 3,876 9 'pl.'? 3,721 a. KZ' 4,199 30'51 51 1.::' slew 3.980 4,173 3 4,365 _ w�i' 4,3 44 4.344 4 560 4,'/ 59 ..0:' ',,' 5,CC7 5,n3T 5,•57 5.520 ' 1) V/ 4,g ra 1.9 (5 5 n4 I. 5A95 11' 5,472 5,L72 5 nie I 3.333 _ INDEX 414.a3ga 434,3.113 Q76O2 I 71982 % CHG -15% 0% 5% I 5% NEW DRILL COLLAR PRICE INDEX UPDATED FOR 4TH QUARTER 2016 ROUNDED 0.D. 1016 2016 3016 4016 glen 616 BlEi 1592 I 851 . 31/::T 581 0 668 733 3 1/1 I L1 J 1,C30 1.1,55 1,303 4'V ' 7n7 1,CR7 1 69 1 3I3R 4'f%+ ' 357 I 1,8367 1.5 1255 .4' 1.799 , 1,790 2.059 2,264 5! 2149 2J 49 2,470 , _ 2.717 Gal 2 035 2)00 -3 , 3,380 3222 __ 3,222 :.1.705 I X1,.07'6 6W 6 IQ 3312 3,112 x1.32 4,19D Ell .3 355 I 3,3 tiff 3 859 424.5 7 a.9 I 3,669 42-9 4,541 ir '/l 3093 I 3693 447 1 4,025 7 '/i' 6" 41.19 I 4,118 4.736 I 5,209 6)42 9,C 42 6 "i1-48 f 7,543 8W 6115 ti,103 71-2 7,513 3 v.,` 8 me 3,2 .5 7 !3 ? .g2$ 7.710 &.402 g` 5 71.3 R,713 9 W r 115 7,115 (1.1- I" 9 il%9 10' 7 Z95 7,299 1.,1,54' Y1,228 11' S 3153 5,331 q 624 113,E87 INDEX Rijn, IS1,853 79,161 I 07,099 CHU r15% 014 1514 10% PRICES OF NEW WELL SERVICE RIGS UPDATED REPLACEMENT COST NEW (RCN) 4T" QUARTER 20'V MAST ENGINE $ RANGE CLASS I '. 103 71' X125 T1 ' X. 15 7.2' X 150 'i2 X 126 f'5' X 15U.'# In C-7 50 SERIES ero S225.000 TO 9300,000 r. S 325,0 DC TO 54' L1 ,0 00 I In v# V# C LASS II 200 51501.x# 3' X'1S5"d1# : X. 203 '�# M' X. 205\1# X. 213'di# ' X 21.21M ER' X215tip# 0-11 50 SERIES 8V71 1 CLASS III 300 ' X 24311# �Ir�1# X 2L�.�h�l# 102' 2.15M# C-11 E I E 8'1;'L2 $425,0 Da TO ,. $530,0 C'3 , 32' X 224M# I {]t' X 250M# 103' X '225M# 1a3' )( 250M# 104' X 250MU 105' X 225M# 105' X 250M# C - 15"Q-15 Ea SE RI ES 12V71 CIA S IV 400 V5.25,0 D3 ria $60C ,OC 3 105' X 2 9OF'fi# 1(16' X 250 NW 108' X 250,1* 108 . 26�'I�'1'# 1OP' X 268M,# 1 O1B' X 270.1141 10Tr X 330M# -1 6;� 12V71 12V92 5:C-13 ' E FBI E L C' Si325,0 13 TO $700,000 CLASS VII EGO GLASS VII 700 11 250M# 110' X 2755,11# 112' X 3COM 11 T 350M# 117. X 35OF G-15 63 SERIES 12V71 (2) Sivreg2 (2) C-18 1.2) 61O SERIES (2) S ≥ (2)12\i/1 $725,000 TO $800 5030 $ Q5,O U'7 T $275,0 •,J Pekes d% err teirecr ti :vtiic: 'ni r, ectsnincionc. .bank rdra. ? • Chaueft. ilia quMML'ar_ HADHADCO INTERNATIONAL.; has completed appraisal and consulting services worldwide since 1982. HAD C) appraisers ha.vai corn p Ieted assignments. t rout' bout the United dted Stagy and over forty countries. F1/ GICO is. the leader in complex valuation services and has earned a reputation for quality work, export analysis and advanced litIgatI o n support around the world. Referrers from clients make up the majority of our appraisal and consulting business_ 19 USED DRILL PIPE MARKET INDEX UPDATED FOR 4T" QTR 2016 F=�F' I I Ind I.ISFD a Rea INDFfy PPI nF; 1d).11 -I -I INSPECTION PAPERS EIZEANGHTIG R ADE tgte 2g16 3 1g. 4g1s ?A' X 5* E ' .73 1 73 1, 52 1.91 2 7;6' X " E.4Z E 2. "'L• 2.15 2.2"3 2.37 3'. ' X 13.3UI E 3.a* 3.69 3.-37 4.07 3 W .X. 1 3.30fI X 0.9.5 3.95 41.-5 L ..a ,3'ai'.K J. G 4 A 4 4.24 2.45. 4 3 4 54 L a 1 +1 s all:. X 13.Ytaa si 2 A4 'I'1' X 15 gila = 4 4 4 as 470 5'SX15.5E#4 311,0 4 4-'33 5.07 3!ra•'Jti.,4..v� G 4774 472 i.' 5.20 3' X 15.5CA L 4 74 4 74 L.9.9 523 4' X 14.GCAL E 4.56E 4.89 5.,3 5.3: 4 X 1 21.CE# :2.32 5.01 5.27 5.53 t'X 14.1)37( G ±.i4 b.24 5.-5C 5.78 .1" X 1'.C}G# S E.3.3 5.33 5.EC 5.616 4`�' 113.7Ctit # E ` 6.' 1 ' 5.10 p6.;5C d.82 4' X 15.rC#X E.4±• 5.40 621 .f.1b ' ' X 15.70ft G 6.52 6..52" 5.2E 7.19 4' X 1.5.7C# S Era 9.66 9. 7.22 4 4'X16.59# E 10.92 '0.62 1' lb_ 11./1 ' 0.78 4 lc X 16.60# X 19.76 V ' 30 _ 11.6 4 4.6' X " GOX G 1O.a5 'O'.$0 1' 39 11.91 4'V X 113 09# s 10.00 re 86 142 12.CG 439 X 20.(0gE 1:}.57 '091 "4 52 1 ,., ' 4w X 7.1i.leLx 1111fi '1 flR a•.1 fill 17-22 4 :..• X 20 G 11.20 " 1 20 1J 70 13.35 4 3I' X 2 :a.ccF,! .5 11A9 i ;1 49 12 35 12 o7 4'a X 22.E!2 . E 11.79 11 T 12 1.19 13.{e. 4%` X22.82 -'X 11.'1 11.91 +1251 13.13 4 -4' .X Z2 WA G 12.' ' 12.19 12230 13.23 4 ' ' X 22.H2# .!g; 11.9' 11.97 12 57 13.20 . B, X 12.EU# E '12.29 'I2.39 12 3 13.ti �; 5' X19..CYX 12.59 - 12.59 1322 13.•3 5' X la SA 0 12. eii 12.7g 1343 1r•.1C 5'X 1Q. #S 12.9' 12.9' 13ba P.21 Si X 2E.CatE b' X 2t .6C# X 1$199 13.99 1374 122.4-2 1.3.32 13313 14 'J5 1.Pa- :II' X. 25341 G •13.11= 13.44 1411 I f1. Eu' r . 3 .E # 6 13.51 13.1A 1419 H. E')(34.01#E _ 13.51 12.51 _ 1419 14.5M 5'X34.0'14X 13.52 13.52 14 39 15.03 ti'X64.0'1#G 19.70 16.70 1499 15. 0' X 34.51# S '13.80 19.90 14 z9 15..21 5ice'X 21.x# E 13.95 13.95 1455 _ 15.E 5 W.X21.F..# X 1z.C9 14.09 1419 15.`3 5 14:' X 21 9(1 $ 14.30 1&.9 1513 16 )35 5 V/ X21.97* * S 1 &.C 125:1 15 35 ill " 5 5 lieS• X 4aC+.l" 15.74 1574 18 (13 irla.3 INDEX I 451.10 X1.10 47.3204 497.34 !ID CHANeE -15''/ 3 in 5'', 5% NEW DRILL PIPE MARKET INDEX UPDATED FOR 4 QTR 2016 INSPECTED PREMIUM PIPE. WITH ;..IRRENT INSPECTION PAPERS PRICE R E lt•JD ED (Std 3-T° iv NI HG L PC) SIZEAIVOHTAIRADE MI6 2016 301G 4Q16 7 3ia X 5.63 At E 6.1d. 5.52 7 95 a 75 2 3,1'4r X 15.0177A x 3 13 d.5Q- ' 31 x.51 7 3,5'X05540 5.66 7.2e.- .a15 931 7 :a' X 6.6F# 5 127E 7.46 55 92-4 7 2.13` X Q.aV#F "x'06 EI.f. 954 10.67 7:°!,e' xiI”. #X Jr is 951 5'93 1f.9 2 MrXa0E*G 'E18 8.C& -.0.35 10.94 8 NEW DRILL PIPE MARKET INDEX UPDATED FOR 4TH QTFC 2016 INSPECTED PRE4.1 UM DIPC, fJm I CLI RREN I N51'ECT1ON -'APERE ROUNDED PR -105 # � t2 'Mith HE 5 FC TOM p views calur"_i n• S IZtl'�r'� EG HUG RAD E �1 tl1 E 1 4Q1,6 2 35- X E. # S 10.1Q .5.75 10.03 11 07 2 7.1891 X -CI tria E 10.30 .5.75 10.C."6 11 07 2 7/34 X 1.187,4DigX I 10.033 9.20 10.;.18 10.-15 11 04 2 7.T.' X 10.40 1.1.00 9.35 11 33 7 7:86 X ' O 4c S 11.90 ii.90 11.c; 121.1 3 W X c0.50# E 1'1.15 12.C3 13.3 15 3 'f X fil.b0# X 11.92 12.E8 14.69 1611 a 1' .X9..1.:42#6 15.15 '13.72 '15.7a 17:38 .3V/X .5L3#8 15.91 14.37 15.:13 W1.5 3 W X 13.3.E.' E 1P.31 1'5A1 19.07 20 70 31S :.13.31;°.X 20.12 17 11 19.67 ii 3 ...4' X 13.3.':41 G 73.30 17 76 19.95 2.1 314 X 13 3i:AL S 7;159 17 59 20.13 22 14 23.43 33.E 3 h.. X 15.50# E 2289 17.75 3 Iii' X 15.5UTX 3".1-5 1.5.59 2'.2( 23.40 I 3 ri' X ' .5.53F E• 2r .99 16.50 LI r' .S9 23.E S W X 15.L 9N ti 2r .a4 14 65 2' ./.5 23.59 'I' X 11.C.0 E .Lila 16 713 Z' .50 23.55 'I' X 1 i.CE-# Y x.23 18 Na r .75 23,90 e X. '14 arch' 5H 19 19 ;2 n7 74 la 4' K 1 1.EE � * b 2311 '19 95 '2 69 24. 6.5 ti.` X. 15.7CA E 2417 20 54 23.62 25.R 24 22 20 59 23.67 30.04 4.` X 15.7cax X 39.67 h' X , E3 7't 5 24 60 T 99 24.25 39.E-7 4` X 15.79 # w 24 93 2' 09 24 25 31.E•7 rs' X 15.00# E 2800 24 5.3 2 25 4 1 ' X1 GI9N X 2'i 13 24 ire 2d. 45 3'1. 4wX 1e `2#73 3QT7 26'I5 •'_�Cr03 33.02 i 14' X 19.8u# a 30 T7 26 is .3C a5 33.09 4 WX2a.1NNE ,3.063 2621 3014 33.15 el IV 23.i IA' X 30 69 MI 25 3019 33.21 41-4'X2C.03 G 3+ 91 25 .35 30 31 9924 4'','X2'i(MN S S' 47 26 75 .1'• n 99.84 4WW'X22.8X34E 3'52 95 &86 33.91 4 W Y. 22.8 24 3r 02 it 95 3 • e1 r, '22 4 f' X .82# jX�' Gs 12 27 •3 a 4D X34..22 a '-.L l 4 X 22.02# 6 3218 2/ 35 f 4b 362-0 b' X 19.33# E ,3E BB CJ 33 31 B5 36.37 ` X. 191tiC W X 35 92 K 53 3e 11 3 112 5'Xa' 950*G 3815 Sri 73 1524 99 F!7 5' X 19..Qa5 le 15 3073 :3.-5 .7A 39.€!7 5 X 75.39 r .7 27 30 53 55-45 39.00 36 41 30 95 3 59 39.15 5' X 25.ceikt X 90.75 5' X 17'.•1'5 OW G 36 97 Z' 43 36 14 6 X 35.EE# 9 r 04 3' 49 3E 20 99.82 9' ! 04.C1A # E r 9 '26' Es -2r 39.33 ' X 3'1.71 MX 31 64 _2 J! 99 rlll1-. b b'X 34 Dili G 3E 0 .32 32 37 17 11.89 !at X itE 1 # r` 38 32 32 57 .37 48 11.21 5 eVX21.9 if( E 3.87 3257 :17na 41.76 5 I' X 21.9 I :u X; 118131 33 37 38 9fs 41.3 f1 .= '4' Pc '2? 93µ E5 :19 49 ::':fir 57 42.46 34 53 5%%+ X 71.4nX S 1955 11 91 3.3 Be 47 57 5 ' X3270#E 3B35 32 37 51. 41.26 5 ' X 24.70# X 26....137 32. 97 37 133 41.59 5 :4' X 24 72* G 3S..43 ;S3 J'1 .32 .3.2 63 3.4 a 51/ il'. 94.70# t5 Y 49 .33 57 112A; 6 X1'3' X 2i1.2C# E 42 35 ,_+6 33 At' .1a 7'5.54 8uS' X'27.rC#h 4347 :fir 95 424 '3.74 INDEX 1748.3 14194.3 17 9E 1877.58 a% CHANGE -1 CI% -15% 15% 10% 20 a' z 3. 3. a an y It m a 4. S It a. r t T u, m q, T 1'II III II;Ilion MOWN 144!•III..■■..■■■■■■■■....■■■■■■■■■■■■■■■won wan mono .■■■■■■■■■■■■■■■■■ NOON MONISM ■■■■■■ ■■ ■■■■ ■■■■■f■■■■■■ ■■■■■ IMPORTANT 100TE REGARDING HAD INTER IVA HOWL, LW PRICE INDEX DAM VAJCO INTERNATI M AL, LLB AND ITS R EPP, ESENTAT. [S Eurc E r'a I H ESPONSI J ILI I ' = OR ANY USE OR MISUSE O= THE ()AT", AS PR R FNTF D, ANY ANALYSIS IJSP, 3 THE DATA TI le ACCLJFIACY L}F L1A IA .a -i:DVIU !L), DMA A PTDV DLL] E.t I HNL] PARTIES ANY OTHER USE Or THE INFORMATION 'Nfl-i OUT THE.EF XPRE SSEO 'W'(ITTFN cor. S=F,J•f A'%JI J AGR F E mENT or H AUUO I N ERN.C-I CI NAL REI'HESEN I A I IVES. MARKET C OI' i MELTS INCLJDED DED IN THIS NE' SLE-TER ARE TI I E. OPINIONS or THE I IADGO II TFRNATIOH?L ETrr AND M?s\ C EP.4 EN-. AND 'I HEY MAY OR MAY NOT AIOI9tEE WITH OTHER CONSL I ! T?',NTS OR APPRAISERS. MARKET COM',1E N —S AHE IN I ENLi E J I J P Rr! . !fi t5I aR Pr: ' R Rr it yr DI- I HE fik RKETS. PLEASENOTE: WHEN USI NFL THE HADCO INTERNATIONAL PRICE AND VAI o F IN -AK DATA, TI IER _ ARE S OPI1E VERY IMPORTANT VALUE CONSIDERATIONS. °P; HR ICES ARE ,WPRAAE$ AND REPRESENT A RANGE Or HIGH ANO I Odd I' HI CES FOR EACH (H f ] LJPINC1 7) CAPACITIES. n R LEI' I H RATINGS ARE iI IO aE ASSIGNED BY VIANUFACRAERS, 1 -1OS ASSUMELS' 1SY ODNTRACTOR S 3) CONDITION (WINGS ARE EASED ON THE FADCO I N I EH r I IONA L z =IN I -I OBIS. f) PRICES ARE NOT ALA GTION I .IOU IDATIO H PRICES OR ORDER _VF LIOU ILUA I Iota PRIC .S. b! I PE HAD} :'D LAIA A INDEX MAY ESE USEFJL L FOR ANAI YSIS BUT SHOULD NOT BE USED AS TI it D i5SIv4 OF AN APPRAISAL WITHOUT ADDITIONAL UE !AILED I \ FORMATION 6) PRICES ARE BASED ON THE HADCO RIG MQIJ FI I NG SYSTEM FOR COMPLETE Rios 7) P RIOE9 AND PRICE C HANG EE S AI -4E I HE REUL I OF A CON I IN UAL DATA COLLECTION PROCESS Sl PRICES ARE FOR ONE PERIOD OF 1 Mb AND MM' NOT BE THE SAVE FOR AM' OTHER PERIOD OF T ME. Si OUR DATA IS UPDATED OIL A QUARTERLY BASIS. 10) OUR DATA IS INTENDED AS A G'J IDE ONLY AN D SHOULD NOT DE USED F OH U• I HER PURPOSES 'Pi DA IA IS CSI _LEUTECI OVER A PERIOD OF TIME. T1 I E RE MAY BE MORE OR LESS DATA FOR ANY PERIOD BEING MEASURED. 12: PRICES ARE BASED ON SOURCES ','E FEEL ARE RELIABLE HOWEVER. WE HAVE NOT VERIFIED ALL DATA- 1 ]) PRICES A'E D CATA Pn:SENTED ARE FOR THE LIN ITEU ,L1A I Ea i 'ARR.E I'S ONLY AND MAY NOT ADPLY TO TIP INTERNATIONAL MAR r ET PRICES- WITHOUT TOUT SOME Us: US I'M E\I S FOR IN I LH A I I Of'ti a._ FACTORS. f itI'THE DRILLING Re PRICE DATA IS FOR COMPLETE RIGS "WITH A tea OrdT' L IC{]rd a _Iw1ctia OF DR LL PIPE AND Oral -LAVES 6S _ 15) Li:RUING U RIG PRICE OA I A DOES NOT INCLUDE TOP DRIVE UNITS OR OTI IER S ECVLL AUTO bbccur r} r : ATI)Rrs. 1 J) OUR L1 STTA SOUR•= ES• I -OH II I PLJ f -O I HE DATA PRESENTED MUST PEF'/AIN CO NFI DENTLAL E 'CEPT THAT I NFO RVATIO TI IAT IS C Org IDER E D AS PL E LIG DOMAIN IN h OHMA I ION UPON NOTIFICATION, EH ROBS FOUND IN THIS PU 3U CAT1DN WILL 9E V rRl rirr) /IND D CORRECTED IN rU, ninc NEWS LETZRS. PEASE NOTIFY US OF ANY CC RRECTIO \IS AND:OR ERRORS. HADCO INTERNATIONAL APPRAISAL DE FIJI IT IONS OF CONDITIONS I HE I-OLLL'ki NC U hF I N: rI C NS OF CONDITIONS H■4ti,"E BEEF'! DEVELOPED ELOPED FOR U S:: IN.; I I(IDGO !NT: 7 NATIONAL APPRAI PIL S. OLIN DEFINITIONS ARE INTENDED TO PROMOTE A GOOD UN DERSTA\ DING O = OO•ND ITI C NS A$$I$NED TO ITEMS APPRAISEV AND NI EFFECTIVE MEANS OF COM MEIN ICATIN 3 THE IrM P.WT OF ODND RI C HS ON VALUE. CARE itir UST RE TAKrm IN ASSIGNMENTS or c•ol Dl1 ION RA 1 INS 0 ACCURATELY REFLECT T= E TRUE I .1#1 PACT ON VALUE. EXCELLENT NEI.•1a:NEAR LY NEVIS 07 1.if% WILLY ICI ,2 MECHANICAL G ND TIO ICJ, EXTREMELY LOW HOURS OF USE. NO DEFECTS AND MAY I . I RE LINDER ifiJARr.ANre. VERY GOOD: IN EXCEPTIONALLY OOOo OONO MO N. MAY HAVE JUST RECENTLY BEEN UOM LETELY OVE RI IZU Lit OR RFRLJIL T ti m 1 NEW OR NEARLY N ='r ti .1011til Eli IAL S AND,' OH HM HAD SUCH LIMITED LEE THAT NO REPAIRS OR 'WORN ART REF"' A, rMrNT,. ARE NECESSARY. VERY _OW HoUXS OF USE. GOOD; IN COMPLETE 100% OPERATING CONDITION m3 KNOWN OR O2VIO'J S h1Ec HAN CAL LIEF EC IS BUT WAY HAVE SOME. E MIN 0-Z WORN PARS TAT WILL NEED REPAIR OR REPLICA- MrNT IN TI IE NEAR rL i U nc. MAY HAVE HIGH HOURS OF USE, BUT NO DEFECTS ARE OBVIOUS. FAIR; HAS VERY F113 I I F I O•J RS OP Dal -NM -0 tj,sr DEFECTS ARE oGvlo Ua ANIU WILL HEOU IFS E REPAIR OR GE JE HAL REBU LD SOON. NOT -0C% FUNOT OFX.AL OR rrrlC I r NT MAY OE ORERATIOFFIA.L L1 rU NOT I 0 mAL EU I DUES TIO'kABLE. POOR; HAS SEEN VERY HAW ANN] I Oita H OU,-; E OF SERVICE 7. U ;RES REBUILD H EPAI , 0 z OVERHAUL BEFORE IT CAN EE USED. NOT OPERATIONAL OR RI NCTIONi L. SCRAP: COST OF REPAIR EXCEEDS VALUE OR COS- OF REPLACING NE WTI I L ICE EQUIPMENT. PAST ti)SF FUL OR rU NCTIoNAL Llrc AND SHOULD tit SOLD AS SCRAP. CONL)I1ION CODES: (E) IV) (GM (F) (PP 48) DETERMI N IN ; CONDITIONS rT S I IOLJ _ D OE ICTE D THAT IN DETERMI MN S CONDITIONS THE APPEARANCE OF TE-E PARTICULAR R ITEM IS IMPORTANT Hoorvrp. TI- Maar:1,10r MUST DE JUDGED ON MECHANICAL AND ELEC-RIC.LKRKING CONDITIONS MD NOT JUST ON APPEARANCE. PAINT, I ti(lR I CATIC ! AND GENERAL C _LAN - UP SHOULD BE PART OF GENERAL MA N I tNANC E ANC SHOULD NOT BE USED TO COVER UP r,rrrcrVE EC UIPM E I r. THE APPRAISER MUS I USE EXPERIENCE ANC FIRSTHAND KNOWLEDGE OF THE EO'J IPM ENT TO MAKE ACC ,J R; ti.TE JUDGMENTS ran CONDITION RATINGS. THE PHYSICAL CC ND ITIGPN, OETERIORATI ON, DEPR ECLATION OR STATE OF REPAIR IS A MAJOR F. R IN VALUES. L ' S OF VALUE DUE TO CURABLE OR INCURABLE DEP RECIATIThi! IS A KEY CO 'dSI )ER MT ON OF MAIN ET 'I•.LI,JE. SUBSCRIBE TO: THE OILFIELD APPRAISER QUARTERLY NEWSLETTER frTEtke ch- c s p ' ih?e to 'PM** International, Mail your one year subscription payment to: PO Box 1465 • Con roq, Texas 77305 _ Send me 5 T e Offish" Appraiser Neskael'etter for 2017 ate invoice me for , X49 . Q0" Or email your subscription request to: i nfoudihadco i riternati oral . com Questions? Call (9 3) 760-1220 S Fax (9 3) 700-1121 9 a Ohl PATE; XRF L; JL :c: I "(:0 c:HZa'5U_ 21 Home xi The Rigs : Rig Rig 8 Rig 8 DRA WORKS: NOV 1000 Electric D ramorks vet (2) 1000 HP Electric Motors MAST: 051142 FT Ho 750,000 LB Static Hook bad SUBSTRUCTURE: DSI 21 FT Clear Height BON on Box Al 400,000 LB Setback GENERATORS: (3) Detroit 16v2000 Diesel Engines S 1.000 KW Generator Sets SCR: 4 -Bay TOP DRIVE: Caring 500 Ton MUD PUMPS: (2) 1600 HP Triplex p (2) '1000 HP Traction Motors ROTARY ABLE: B 27.5' Oikvell BOP:.1..3 518' 5,000 LB Double Ram wi 1340 5000 LB Annular MUD SYSTEM: 1080 BBL ?if 5x5 Centrifugal Mang Pumps and 7.5 HP Agitators 0esander, Desilter SHALE SHAKER: (2) LinearMotion CHOKE MANIFOLD: 5000 LB Skid Mounted Choke Manifold FUEL TANK: 10,000 Gallon vi! 4 Compartment Lubster WATER TANK: 500 BBL DOGHOUSE: 10'xS'x 30' CHANGE HOUSE: 10'x Six 30' BLOCK HOOK: 350 Ton SKID PAC KAGE: ► ble to skid in a straight line up to 15041. ISCELLANECUS: Toolpusher House, Catwalk, Pipe Racks, Misc Handling Tools, Spare Parts and Complete 4P Winterization Boiler 22 Horne TheRigs * Sign Rig 10 Rig 10 Uniskid D RAWWORKS: Drillmaster 10H HP Electric wit (2), Electric; Motors MA ST: (New) Full Circle 142 FT Bootstrap Rated 75ot000v Hook SUBSTRUCTURE: 25' Uniskid Box Type Iv/ .i Side Skid GENERATOR 5: ►(3:i Detroit Series 20&D Diesel Engines wi 1000 IOW, 600 Volt SCR: Ili Omen 4x4 TOP DRIVE: Cann] 5D0i Tan MUD PUMPS: (2)¶6I30 HP Triplex, Belt Driven ks GE752 motor! ROTARY TABLE; &h -Well 27.5 ®L ifHOOK.; 350 Ton ►UnitL°d BOP RAMS: 11 5000r- Double Rangy BOP ANNULAR:11' 5000# CHOKE MANIFOLD: 50004 CLOSING UNIT: 5 Station I I0 Gallon MUD SYSTEM: 1100, BBL hdjud System '' 6 x 8 Centrifugal t,fi::ing Pumps, Low Pressure Mixing. Guns,.Agfators, (3)Derrick Linear Meti n Shale Shaker Demek Desander? Desilter and 500 EEL Prerm Tank FUEL TANK: 10,000 gallon WATER TANK: 500 BBL DOGHOUSE: i2 10' x8' 30' SKID PAC GE: L niSkid. Able to ski in a straight line, can also do a second row of wells on 10 ft centers simply by LIniS kidding without haying to rig down. MISCELLANEOUS: Rig 's^inter anon, Taolpushers Goners, Catualk, Sb (5) Pipe Racks, Pipe Spinner, Kelly Spinner, Miscellaneous Handling Tools, and r2: ISO HP Boilers. 23 Home 3 The Pigs 5) Rig 4 Rig 4 Rig 4 DRAW ORK S: (I) Superior 700,1 1I8 line, Hydrant brake ENGINE (1) Deboit.V-12 850 HP Tier 2 Diesel Engine wwl6 speed Allison transmission MAST: Greco 133 4 6k SUBSTRUCTURE: (1) Greco box on box 21 foot MUD PUMPS: (2) China F-1000 ENGINES: 2i Detroit Series 200010O0 H'PTier2!id Allison 6061 transmission GENERATORS: (2) Detroit Series 60 685 HP Ter 3 wi 430 IICN generators BLOCK I HOOK: (911 Gardner Denver 200 Ton ROTARY TABLE: (1) National Model 17 112' SWIVEL: (1) 200 ton Ides& 200 BOP RAMS: (1) Shaffer 1'1! 5000 PSI Double Gate BD P ANNULAR: (1) Shaffer 1? 5000 PSI CHOKE MANIFOLD: 3.000 PSI MUD TANKS:1100 SHALE SHAKER: (2) Derrick Linear Motia Shakers FUEL TANK: (1) 61000 Gallon WATER TANK: 400 BBL DOGHOUSE: t I) 8'x 83)(16' MISCELLANEOUS Gray Pipe Spinner, Kelly Spinner. and Miscellaneous Handling Tools 24 NU I IC:t OF lit I tKMINA I ION PERSONAL PROPERTY Christopher M. Woodruff Weld County Assessor 1400 N 17th Ave Greeley, CO 80631 Date of Notice: 7/10/2017 Telephone: (970) 400-3650 Fax: (970) 304-6433 Office Hours: 8:00AM - 5:00PM ACCOUNT NO. TAX YEAR TAX AREA LEGAL DESCRIPTION/ PHYSICAL LOCATION O9526224 2017 0967 PROPERTY OWNER FRONTIER DRILLING 1608 NW EXPRESSWAY STE 102 OKLAHOMA CITY, OK 73118-1440 DRILLING RIG 8 RECEIVED JUL 24 2017 WELD COUNTY COMMISSIONERS ACTUAL VAI 4,400,000 SESSOR'S VALUATION ACTUAL VALUE AFTER REVIEW 4,400,000 TOTAL $4,400,000 $4,400,000 The Assessor has carefully studied all available information, giving particular attention to the specifics included on your protest. The Assessor's determination of value after review is based on the following: PP01 - Your personal property has been valued in accordance with Colorado law. Other personal property, similar in nature, has been consistently valued using the same statutory methods. If you disagree with the Assessor's decision, you have the right to appeal to the County Board of Equalization for further consideration, § 39-8-106(1)(a), C.R.S. The deadline for filing personal property appeals is July 20. The Assessor establishes property values. The local taxing authorities (county, school district, city, fire protection, and other special districts) set mill levies. The mill levy requested by each taxing authority is based on a projected budget and the property tax revenue required to adequately fund the services it provides to its taxpayers. The local taxing authorities hold budget hearings in the fall. If you are concerned about mill levies, we recommend that you attend these budget hearings. Please refer to last year's tax bill or ask your Assessor for a listing of the local taxing authorities. Please refer to the reverse side of this notice for additional information. Agent (If Applicable): 15-DPT-AR ARL VOL 2 1-84 Rev 01-16 2017-2585 APPEAL PROCEDURES County Board of Equalization Hearings will be held from July 24th through August 4th at 1150 O Street. To appeal the Assessor's decision, complete the Petition to the County Board of Equalization shown below, and mail, file online, or deliver a copy of both sides of this form to: Weld County Board of Equalization 1150 O Street, P.O. Box 758 Greeley, CO 80631 Telephone: (970) 356-4000 ext, 4225 Online: http://www.co.weld.co.us/apps/cboe/ To preserve your appeal rights, your Petition to the County Board of Equalization must be postmarked or delivered on or before July 20 for personal property — after such date, your right to appeal is lost. You may be required to prove that you filed a timely appeal; therefore, we recommend that all correspondence be mailed with proof of mailing. You will be notified of the date and time scheduled for your hearing. The County Board of Equalization must mail a written decision to you within five business days following the date of the decision. The County Board of Equalization must conclude hearings and render decisions by August 5, § 39-8-107(2), C.R.S. If you do not receive a decision from the County Board of Equalization and you wish to continue your appeal, you must file an appeal with the Board of Assessment Appeals by September 10, § 39-2-125(1)(e), C.R.S. If you are dissatisfied with the County Board of Equalization's decision and you wish to continue your appeal, you must appeal within 30 days of the date of the County Board's written decision to ONE of the following: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, CO 80203 (303) 866-5880 www.dola.colorado.ciov/baa Binding Arbitration For a list of arbitrators, contact the County Commissioners at the address listed for the County Board of Equalization. If the date for filing any report, schedule, claim, tax return, statement, remittance, or other document falls upon a Saturday, Sunday, or legal holiday, it shall be deemed to have been timely filed if filed on the next business day, § 39-1-120(3), C.R.S. District Court Contact the District Court in the County where the property is located. See your local telephone book for the address and telephone number. PETITION TO COUNTY BOARD OF EQUALIZATION What is your estimate of the property's value as of June 30, 2016? (Your opinion of value in terms of a specific dollar amount is required for real property pursuant to § 39-8-106(1.5), C.R.S.) What is the basis for your estimate of value or your reason for requesting a review? (Please attach additional sheets as necessary and any supporting documentation, i.e., comparable sales, rent roll, original installed cost, appraisal, etc.)„ (t_ CliaCtidlo ATTESTATION I, the undersigned owner or agent' of the property identified above, affirm that the statements contained herein and on any attachments hereto are true and complete. Signa ure Telephone Number �� 4 21 f rksYlliercifi) re Email Address 'Attach letter of authorization signed by property owner. Date ,V017 ? 15-DPT-AR ARL VOL 2 1-84 Rev 01-16 NO I IGt CM- lit I tKMINA I ION PERSONAL PROPERTY O9532238 Christopher M. Woodruff Weld County Assessor 1400 N 17th Ave Greeley, CO 80631 Date of Notice: 7/10/2017 Telephone: (970) 400-3650 Fax: (970) 304-6433 Office Hours: 8:00AM - 5:00PM TAX YEAR TAX AREA LEGAL DESCRIPTION! PHYSICAL LOCATION 2017 0967 to FRONTIER DRILLING 1608 NW EXPRESSWAY STE 102 OKLAHOMA CITY, OK 73118-1440 DRILLING RIG 4 RECEIVED JUL 242017 WELD COUNTY COMMISSIONERS ASSESSOR S VALUATION ACTUAL VALUE PRIOR TO REVIEW 124,317 124,317 TOTAL $124,317 $124,317 The Assessor has carefully studied all available information, giving particular attention to the specifics included on your protest. The Assessor's determination of value after review is based on the following: PP01 - Your personal property has been valued in accordance with Colorado law. Other personal property, similar in nature, has been consistently valued using the same statutory methods. If you disagree with the Assessor's decision, you have the right to appeal to the County Board of Equalization for further consideration, § 39-8-106(1)(a), C.R.S. The deadline for filing personal property appeals is July 20. The Assessor establishes property values. The local taxing authorities (county, school district, city, fire protection, and other special districts) set mill levies. The mill levy requested by each taxing authority is based on a projected budget and the property tax revenue required to adequately fund the services it provides to its taxpayers. The local taxing authorities hold budget hearings in the fall. If you are concerned about mill levies, we recommend that you attend these budget hearings. Please refer to last year's tax bill or ask your Assessor for a listing of the local taxing authorities. Please refer to the reverse side of this notice for additional information. Agent (If Applicable): 15-DPT-AR ARL VOL 2 1-84 Rev 01-16 APPEAL PROCEDURES County Board of Equalization Hearings will be held from July 24th through August 4th at 1150 0 Street. To appeal the Assessor's decision, complete the Petition to the County Board of Equalization shown below, and mail, file online, or deliver a copy of both sides of this form to: Weld County Board of Equalization 1150 O Street, P.O. Box 758 Greeley, CO 80631 Telephone: (970) 356-4000 ext, 4225 Online: http://www.co.weld.co.us/apps/cboe/ To preserve your appeal rights, your Petition to the County Board of Equalization must be postmarked or delivered on or before July 20 for personal property — after such date, your right to appeal is lost. You may be required to prove that you filed a timely appeal; therefore, we recommend that all correspondence be mailed with proof of mailing. You will be notified of the date and time scheduled for your hearing. The County Board of Equalization must mail a written decision to you within five business days following the date of the decision. The County Board of Equalization must conclude hearings and render decisions by August 5, § 39-8-107(2), C.R.S. If you do not receive a decision from the County Board of Equalization and you wish to continue your appeal, you ritu: t rile an appeal with the Board of Assessment Appeals by September 10, § 39-2-125(1)(e), C.R.S. If you are dissatisfied with the County Board of Equalization's decision and you wish to continue your appeal, you must appeal within 30 days of the date of the County Board's written decision to ONE of the following: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, CO 80203 (303) 866-5880 www.dola.colorado.gov/baa Binding Arbitration For a list of arbitrators, contact the County Commissioners at the address listed for the County Board of Equalization. If the date for filing any report, schedule, claim, tax return, statement, remittance, or other document falls upon a Saturday, Sunday, or legal holiday, it shall be deemed to have been timely filed if filed on the next business day, § 39-1-120(3), C.R.S. District Court Contact the District Court in the County where the property is located. See your local telephone book for the address and telephone number. PETITION TO1OOUNTY$4ARD OF EQUALIZATION What is your estimate of the property's value as of June 30, 2016? (Your opinion of value in terms of a specific dollar amount is required for real property pursuant to § 39-8-106(1.5), C.R.S.) $67Dl /5g. 5r) What is the basis for your estimate of value or your reason for requesting a review? (Please attach additional sheets as necessary and any supporting documentation, i.e., comparable sales, rent roll, original installecost, appraisal, etc.) ATTESTATION I, the undersigned owner or agent' of the property identified above, affirm that the statements contained herein and on any attachments hereto are true and complete. c � 405-7 5-77a) Signature ' ii Telephone Number k Email Address U ' Attach letter of authorization signed by property owner. Date t, 15-DPT-AR ARL VOL 2 1-84 Rev 01-16 NO I IC:t VI- lit I tKMINA I ION Christopher M. Woodruff Weld County Assessor 1400 N 17th Ave Greeley, CO 80631 Date of Notice: 7/10/2017 Telephone: (970) 400-3650 Fax: (970) 304-6433 Office Hours: 8:00AM — 5:00PM ACCOUNT NO. TAX YEAR TAX AREA LEGAL DESCRIPTION/ PHYSICAL LOCATION 09526267 2017 0967 W, O U 0 FRONTIER DRILLING 1608 NW EXPRESSWAY STE 102 OKLAHOMA CITY, OK 73118-1440 DRILLING RIG 10 RECEIVED JUL 242017 WELD COUNTY COMMISSIONERS PERSONAL PROPERTY PROPERTY CLASSIFICATION ACTUAL VALUE PR REVIEW. 2,200,000 UATIOI ACTUAL VALUE AI REVIEW ,''. 2,200,000 TOTAL. $2,200,000 $2,200,000 The Assessor has carefully studied all available information, giving particular attention to the specifics included on your protest. The Assessor's determination of value after review is based on the following: PP01 - Your personal property has been valued in accordance with Colorado law. Other personal property, similar in nature, has been consistently valued using the same statutory methods. If you disagree with the Assessor's decision, you have the right to appeal to the County Board of Equalization for further consideration, § 39-8-106(1)(a), C.R.S. The deadline for filing personal property appeals is July 20. The Assessor establishes property values. The local taxing authorities (county, school district, city, fire protection, and other special districts) set mill levies. The mill levy requested by each taxing authority is based on a projected budget and the property tax revenue required to adequately fund the services it provides to its taxpayers. The local taxing authorities hold budget hearings in the fall. If you are concerned about mill levies, we recommend that you attend these budget hearings. Please refer to last year's tax bill or ask your Assessor for a listing of the local taxing authorities. Please refer to the reverse side of this notice for additional information. Agent (If Applicable): 15-DPT-AR ARL VOL 2 1-84 Rev 01-16 APPEAL PROCEDURES County Board of Equalization Hearings will be held from July 24t'' through August 4th at 1150 O Street. To appeal the Assessor's decision, complete the Petition to the County Board of Equalization shown below, and mail, file online, or deliver a copy of both sides of this form to: Weld County Board of Equalization 1150 O Street, P.O. Box 758 Greeley, CO 80631 Telephone: (970) 356-4000 ext, 4225 Online: http://www.co.weld.co.us/apps/cboe/ To preserve your appeal rights, your Petition to the County Board of Equalization must be postmarked or delivered on or before July 20 for personal property — after such date, your right to appeal is lost. You may be required to prove that you filed a timely appeal; therefore, we recommend that all correspondence be mailed with proof of mailing. You will be notified of the date and time scheduled for your hearing. The County Board of Equalization must mail a written decision to you within five business days following the date of the decision. The County Board of Equalization must conclude hearings and render decisions by August 5, § 39-8-107(2), C.R.S. If you do not receive a decision from the County Board of Equalization and you wish to continue your appeal, you must file an appeal with the Board of Assessment Appeals by September 10, § 39-2-125(1)(e), C.R.S. If you are dissatisfied with the County Board of Equalization's decision and you wish to continue your appeal, you must appeal within 30 days of the date of the County Board's written decision to ONE of the following: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, CO 80203 (303) 866-5880 www.dola.colorado.gov/baa Binding Arbitration For a list of arbitrators, contact the County Commissioners at the address listed for the County Board of Equalization. If the date for filing any report, schedule, claim, tax return, statement, remittance, or other document falls upon a Saturday, Sunday, or legal holiday, it shall be deemed to have been timely filed if filed on the next business day, § 39-1-120(3), C.R.S. District Court Contact the District Court in the County where the property is located. See your local telephone book for the address and telephone number. PETITION TO COUNTY BOARD OF EQUALIZATION What is your estimate of the property's value as of June 30, 2016? (Your opinion of value in terms of a specific dollar amount is required for real property pursuant to § 39-8-106(1.5), C.R.S.) $ /, I CO(ITN, What is the basis for your estimate of value or your reason for requesting a review? (Please attach additional sheets as necessary and any supporting documentation, i.e., comparable sales, rent roll, original installcost, appraisal, etc.) ATTESTATION I, the undersigned owner or agent' of the property identified above, affirm that the statements contained herein and on any attachments hereto are true and complete. Signature (L Email Address c&4i e r -c -V V®5--74/5 770( Telephone Number ikt feL 1 Attach letter of authorization signed by property owner. /9( Date 15-DPT-AR ARL VOL 2 1-84 Rev 01-16 FRON July 20, 2017 Weld County Board of Equalization 1150 O Street, PO Box 758 Greeley, CO 80631 ING RE: 2017 Property Values Dear Board: Frontier Drilling would like to protest the property values for the tax year 2017. Rig values are down considerably with the downturn in the oil and gas industry. Frontier Drilling had only one rig operating in Colorado and it ended operations in May 2016. The rigs are all stacked in the same location, Lot 4 ST Noco Minor Sub, Nunn, CO. We feel that 50% reduction in the current year actual values for Rigs 4 and 10 and a 75% reduction in Rig 8 would accurately reflect 2016 rig values. Frontier Drilling would like to keep a presence in Weld County; however, without a downward adjustment in rig values, which we feel more accurately portrays the actual 2016 values, it will become economically unfeasible for Frontier Drilling's rigs to remain in Colorado. Thank you for your time and consideration in the valuation of Frontier Drilling's rigs stacked in Weld County. Regards, bcaT Robert Hammons 1608 NW Expressway Suite 102 OKC, OK 73118 Phone 405-745-7700 Fax 405-745-6700 SO • 0 ft 4 S • • • • s WO r``- °a Ur°r C4 M N'N g I H J G:- 1 D (-) Da_ ` N A.,ti Dto ON em ur,-., ,,,ai a a 'ill `ekp QJ .tINn U O 5 r IV trya S iG 0 00 Cs Z^1 P"9 Ln can - f tri -a' � nO V ) 1. u� b.. i X NS E z Co Go 1-4 • •.••.f ••.••. I.•.4 ••••Y• N+•.. • .a..•.•• ..•.•..:. .. M. • •MN Y'N.N• 0.WMi. -w • •...• u, ••.... •.«• •..•.••1. . ••••• •••.•.••. .•...••• •........ ...Y.. ... •••••• •..•., ...•.. ... •.».. w•. ••••••••• • •••M •••••e ••.._ MM• .•..N I••••• • •••••M. W NM•• M•.•. •....• ••••.. •••••••••• h.Y•w •••• • at lark 1 as July 24, 2017 Petitioner: FRONTIER DRILLING 1608 NW EXPRESSWAY STE 102 OKLAHOMA CITY, OK 73118-1440 CLERK TO THE BOARD PHONE (970) 400-4226 FAX (970) 336-7233 WEBSITE: www.co.weld.co.us 1150 O STREET P.O. BOX 758 GREELEY CO 80632 Agent (if applicable): RE: THE BOARD OF EQUALIZATION 2017, WELD COUNTY, COLORADO NOTIFICATION OF HEARING SCHEDULED Docket #: 2017-2585, AS0097 Appeal #: 2008217122 Hearing Date: 8/3/2017 1:30 PM Account(s) Appealed: O9526224 O9526267 O9532238 Dear Petitioner(s): The Weld County Board of Equalization has set a date of AUGUST 3, 2017, at or about the hour of 1:30 PM, to hold a hearing on your valuation for assessment. This hearing will be held at the Weld County Administration Building, Assembly Room, 1150 O Street, Greeley, Colorado. You have a right to attend this hearing and present evidence in support of your petition. The Weld County Assessor or his designee will be present. The Board will make its decision on the basis of the record made at the aforementioned hearing, as well as your petition, so it would be in your interest to have a representative present. If you plan to be represented by an agent or an attorney at your hearing, prior to the hearing you shall provide, in writing to the Clerk to the Board's Office, an authorization for the agent or attorney to represent you. If you do not choose to attend this hearing, a decision will still be made by the Board by the close of business on August 5, 2017, and mailed to you within five (5) business days. Because of the volume of cases before the Board of Equalization, most cases shall be limited to 10 minutes. Also due to volume, cases cannot be rescheduled. It is imperative that you provide evidence to support your position. This may include evidence that similar homes in your area are valued less than yours or you are being assessed on improvements you do not have. Please note: The fact that your valuation has increased cannot be your sole basis of appeal. Without documented evidence as indicated above, the Board will have no choice but to deny your appeal. If you wish to obtain the data supporting the Assessor's valuation of your property, please submit a written request directly to the Assessor's Office by fax (970) 304-6433, or if you have questions, call (970) 353-3845. Upon receipt of your written request, the Assessor will notify you of the estimated cost of providing such information. Payment must be made prior to the Assessor providing such information, at which time the Assessor will make the data available within three (3) working days, subject to any confidentiality requirements. Please advise me if you decide not to keep your appointment as scheduled. If you need any additional information, please call me at your convenience. Very truly yours, BOARD OF EQUALIZATION Esther E. Gesick Clerk to the Board Weld County Board of County Commissioners cc: Christopher Woodruff, Assessor Hello