Hi, I just received the Notice of Appraised Value from Lee County on a producing property (not sure of the terminology, so apologies in advance).
The appraisal last year was $1,020.
Proposed for this year is $6,740.
Did everyone's tax appraisal shoot up this year? I'm not sure where to start in order to protest, or is there a reason why I shouldn't protest? Thanks for any suggestions/guidance.
The property description on the appraisal is:
Lease: 25574 Type: REAL Owner: 200497
Legal:
Merka #1
Hilcorp Energy Co
211 Mock W N
RRC #25574
0.013519 Royalty Interest
Category: G1
Railroad #: 25574
Pulled the production graph from the Merka 1H (attached).
Looks like end of 2012 saw production drop from 284 to 89 BO per month and then nothing for the first seeral months of 2013.
Then production back at higher rate (i.e. max 498 BO per month). Latest month is 369 BO per month.
I would not be surprised if the tax appraisers took the production profile since the well went back on production and used that to calculate new valuation. This is much better (and higher) profile than what well was doing in late 2012.
That may be the reason behind the increased valuation but I cannot comment if this info is supportive of a 600+% increase.
1829-Merka1HLeeCoProductiongraph.pdf (57.3 KB)