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Ran into this in a game yesterday. Fired 5 models from a chimera top hatch, all had rapidfire weapons so there where 10 shots. There was only 1 enemy model within 12" but 5 within 24". The rules say a model can be removed as a casualty if it is in range when the weapons are fired.
What is the range of a rapid fired weapon that takes two shots? Is the range effectively reduced to half for wounding purposes or can models within the full range of the weapons still be hit?

I see it as you still have a range of 24" (lasguns and plasmaguns) but just get an extra shot when within 12".
My opponent saw it as their range was effectively reduced to 12" because they where firing two shots a piece so only models within 12" would be hit.

No. Rapid Fire gives you an extra shot if the target is close enough, it doesn't change the weapons range at all.

OUT OF RANGE
As long as a model was in range of the enemy when To Hit rolls
were made, he is considered to be in range for the duration of
the Shooting attack, even if the removal of casualties means that
the closest model now lies out of range.

Pg. 16 of dat BRB.

If being within half range halved the range of a Rapid Fire weapon it would be impossible to get a second shot.

 Leonus wrote:
OUT OF RANGE
As long as a model was in range of the enemy when To Hit rolls
were made, he is considered to be in range for the duration of
the Shooting attack, even if the removal of casualties means that
the closest model now lies out of range.

Pg. 16 of dat BRB.

That actually talks about something completely different.

The wound pool can be allocated to anyone up to 24" as counter intuitive as that may be it is presumably done to keep up speed of play after all a boltgun doesn't have a switch for 'up close and personal' its just naturally more effective at close range. The only way to work it out would be for them to write rules where you fire one guy at a time like in kill team and that's not really suitable for regular 40k scale

Leonus - whcih is altered by the BRB FAQ

However, in this case the Range of a Bolter or Lasgun is still 24"; you just gain an extra shot if you are firing at a unit within half range