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Oil and Gas Industry – Drilling Rigs Non-Taxable List
This list is specific only to a drilling rig.
Purchases or leases of these items by someone commercially and regularly engaged in the exploration, discovery or development of petroleum or natural gas are exempt from PST. The machinery or equipment must be used over 90% of the time in those activities.
This is not a complete list. Items not on this list may be found on one of our other lists for the oil and gas industry. The other lists are:
If an item is not on any of these lists and you are unsure how tax applies, please contact us.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- A legs
- Air slips also known as tubing slips
- Arm - pipe that is an intregral part of the drilling rig; raising
- Bails (links)
- Battery box
- Bits - drill
- Block - travelling
- Blowout preventors (BOP)
- Boilers
- Buildings, support - when used as weather-related protective covering for equipment such as electrical generators or blow out protector controls or pumps
- Bushing - kelly
- Cables - electrical (integrated into machinery)
- Casing
- Casing jack
- Cat head
- Catwalks
- Cement pads that are a part of a drilling rig or derrick (see also our Taxable List - Oil and Gas Industry)
- Cementing equipment
- Choke manifold
- Circulating systems - includes mud tanks, mud mixers, discharge and return lines and separators
- Coil tubing
- Coil tubing reel
- Collars - drill
- Couplings
- Crown
- Crown block and sheaves
- Crown cage
- DC electric motors (integrated) used to drive the drawworks mud pumps, or top drives, also commonly called traction motors
- Deadline anchor also known as deadline tie-down anchor - hoisting equipment
- Derrick also known as masts
- Derrick - monkey board, crown
- Diesel power generating systems (integrated)
- Discharge and return lines
- Dog houses (see also Support buildings)
- Drawworks (hoisting equipment)
- Drill - bits, collar, drum also known as main drum, line, pipe
- Drill line spool
- Driller's platform and control panel
- Drives - top, rotary and pump
- Electrical cables (integrated into machinery)
- Electrical distribution panel (integrated)
- Electrical generating systems (integrated)
- Elevators - equipment used for handling pipe and other drillstring components
- Engines
- Equipment - hoisting
- Fast line
- Fittings
- Flare tanks and lines - drill pipe handling equipment
- Flare tank systems, located at the wellsite, that are directly connected to the drilling rig and are used to control polluting emissions
- Float equipment
- Foundations, support
- Fuel tanks - see Tanks
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- Generating systems - diesel or electric
- Geronimo and escape lines
- Guy and sway lines
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- Hoisting equipment
- Hooks and swivels - drill pipe handling equipment
- Hydraulic tank
- Hydraulic winches
- Hydromatic tank
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- Injector head that runs or retrieves the coil tubing
- Integrated DC electric motors used to drive the drawworks mud pumps or top drives
- Integrated diesel power generating systems
- Integrated electrical operating systems
- Integrated fuel tanks - see Tanks
- Integrated pump units
- Integrated steam heaters
- Levelling jacks and pedestal
- Lights when integrated with drilling rig
- Lines - discharge, return, flare
- Links - (bails)
- Load beam and matting
- Load lines
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- Main drum also known as drill drum - part of the drawworks
- Manifold - choke; mud
- Mast also known as derrick
- Mats - support (see also our Taxable List - Oil and Gas Industry)
- Measurement While Drilling (MWD) equipment
- Monkey board and crown
- Motors - includes mud motors
- Mud - tanks, mixers, motors, hogs (pumps) but not the mud itself; manifold
- MWD (Measurement While Drilling) equipment
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- Outrigger (a support on a drilling rig that may be hydraulically operated or pinned on that provides support to keep the drilling rig from tipping due to wind or other loads
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- Pipe - drill
- Pipe arm that is an integral part of the drilling rig
- Power divider (splitter that diverts rig power to either road function or drawworks function)
- Power plants - includes diesel, electrical
- Power take-off (a component in the drive train that allows the transfer of power from the transmission to the hydraulic systems)
- Power tongs
- Preventors - blowout (BOP)
- Protectors - thread
- Pumps (integrated with the rig) includes mud hogs that force drilling mud downhole
- Pump units - includes submersible trash or sump
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- Raising arm
- Raising ram - telescoping ram hydraulic arm
- Reel for coil tubing
- Rotary table
- Rotary and pump drives
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- Safety valves that are a part of the equipment on the rig
- Sandline - also known as sand line
- Sand line drum also known as swab drum, part of the drawworks
- Separators
- Shale shakers
- Slips (drill pipe handling equipment)
- Spools (specialized pieces that adapt tubing to BOPs or for spacing requirements between BOP and wellhead)
- Steam exchangers (previously listed as heat exchangers)
- Substructure
- Support buildings - when used with drilling rigs, where the support buildings are protective coverings for equipment such as electrical generators or blow out protector controls or pumps and are so integrated that the buildings become a part of the equipment they are protecting (see also Dog houses)
- Support - mats (see also our Taxable List - Oil and Gas Industry), foundations
- Swab drum also known as sand line drum, part of the drawworks
- Swivels and hooks
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- Tanks - flare, integrated fuel, mud or water, stand alone fuel tank fully integrated with drilling rig that serves as the direct fuel supply for the rig
- Telescoping ram hydraulic arm
- Thread protectors
- Tong line
- Tongs - backup and integral tongs, power tongs and jaws
- Top drives
- Traction motors (integrated) - a common name for DC electric motors used to drive the drawworks, mud pups or top drives
- Travelling block
- Tubing - includes coil tubing
- Tubing slips also known as air slips
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- Valve manifold (integral part of the high pressure pumping system)
- Water tanks that store water used or produced in drilling process
- Weight indicator
- Wellhead
- Winches - includes hydraulic
- Working floor
Last Revised: February 2009
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