Rev. Proc. 66-18

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to provide advice concerning the proper classification of such depreciable assets as floating or self-propelled drilling vessels and barges, platforms, and support vessels within the guideline classes of Revenue Procedure 62-21, C.B. 1962-2, 418.

SEC. 2. CONCLUSION.

Floating or self-propelled drilling vessels and barges, platforms, and support vessels, such as those used in the exploration for oil or gas in offshore operations, are classified in Group 2, Class 2(b), Marine Contract Construction with a guideline class life of 12 years. Included is the vessel itself and all drilling equipment related thereto. Tenders, barges, towboats, crew boats and other vessels used to transport supplies, equipment, and personnel in offshore operations are classified in the same class. For activities of this kind, this classification includes equipment used in both force account and contract construction.

SEC. 3. EFFECT ON OTHER DOCUMENTS.

Revenue Procedure 62-21, C.B. 1962-2, 418, is hereby supplemented.