So is anyone protesting their mineral interest / property taxes for our Tonkawa production unit? If one did prrotest, would the assessed market value versus the actual market value (payments received) be a valid argument for protest? I am new to this type of property tax.
I have no clue as to your question.
Just 2me from what I understand the appraisal you got like I did on the Tonkawa unit is not an actual property tax bill per say. It is just a guesstimate as to what may be produced. The final taxbill this fall will be based upon the actual value of the royalties etc. This is the understanding I got from the appraisal office. They don’t really know exactly the value of what is there its just a little something to plan on for this fall and it may be more or it may be less. With the current outlook on natural gas because of the glut probably less. I hope I answered your question and if I’m wrong someone give your opinion. Thanks
Unless you, or EOG, protest the appraised value shown in the notice you received I think you’ll find that is the same value your producing mineral interest will be taxed on when the school and county tax bills come out next fall.
The tax value the appraisal district puts on a well is supposed to be based on the projected value of production from the well over it’s economic life discounted back to it’s net present value on January 1 of that tax year. Each appraisal district has a group of consultants that calculate those values. If you contact them and request it they should be willing to give you a copy of the calculations they used to come up with that appraised value.
The operator is in the best position to get the appraised value reduced but they don’t always follow through in providing the county’s consultants the updated data they would need to agree on a change, or if they do work out a change the appraisal district doesn’t always pass it on to the royalty owners.
Filing a protest usually doesn’t result in getting the value reduced unless the consultants have a complete bust in their calculations, but I still think it’s worth filing the protest form within the deadline and getting the consultants to email you the backup on their calculations. You can always waive having a hearing and agree to accept their value.
Thanks for the feedback and advise everyone. I understand the notice we received is not a bill and the amount or value on it is only the CAD’s appraised value (estimate) based on the CAD’s outsourced vendor’s formula. I know I will get an actual bill later eventually but I guess my actual question is still "Has anyone ever used the sum of their “actual” monthly royalty payments for the year as their proposed value of their mineral interests to protest the “assessed” value by the CAD? I ask this because the CAD’s assessed value is about twice a high as the actual total royalty payments I am expecting to receive by this year end. If the CAD eventually bill me for the tax on my “actual” value of royalty payments received in 2019 that makes more sense to me and I would be ok with that. But to say my property is worth twice as much as the amount I received in actual royalty payments, which I consider to be the true and demonstrated market value of the mineral interest, is harder for me to understand. Just curious. I also read somewhere that for mineral interest owners in a production unit, if one mineral owner’s protest is successful in reducing their appraised value then that would impact all mineral owners appraised values. Has anyone heard of that? I guess that would make sense.
Now that we have the tax dilemma nearly solved getting back to the Tonkawa site I went by there 2 days ago and there were bulldozers leveling a larger area to the north of the present pad with a large amount of black topsoil. I don’t know if this is an addition to the existing large pad for gravel base to be applied for another future rig or what. But there is definitely more activity again at the site. Another bit of reliable information I received from an actual landowner about 8 miles to the southwest of the Tonkawa EOG is getting ready to put down a pad to drill a wildcat just off Brushy Rd. In Colorado county. This site is located on the old Prihoda property and according to the landowner of the mineral rights it’s looking very good for the drilling of another well in that vicinity. This was originally the southern Pallus Energy lease which was recently entirely acquired by EOG RESOURCES. Has anyone seen where EOG has filed yet for a permit to drill at this site? Dusty 1 your usually on top of that do you have anything to report? Thanks I’ll keep ya’ll updated on the Tonkawa and the new site as I get information. Till next time.
No new Colorado County permit applications filed by EOG since that RVW Trust vertical well.
I visited the Tonkawa RVW TRUST UNIT area this morning. There is what looks like a rig that has a lot of piping attached to it so it probably is piping for final completion on the RVW TRUST UNIT. Does anyone know or could possibly speculate as to what this well is…dry gas, condensate, distillates or oil? Also what formation would they incur at 11,500 vertical?
Most likely the target formation was the Wilcox. In 1973 a well “Marek #1” was drilled to 11,500’ Wilcox formation. The well did produce some oil and gas from perforations at 8380’ to 8394’ and from 10,974’ to 10,997’. The well was plugged in 1984. I do not know what the cumulative production was. The Marek #1 was located in Austin County near New Ulm approximately 4 miles to the southeast of the Tonkawa 1H.
Has anyone heard anything lately on the RVW TRUST UNIT 1? BY THE WORD OF LONGTIME OILFIELD EXPERTS THEY SAY ITS IN THE WILCOX FORMATION PRIMARILY OIL AND LIQUIDS. GIVEN THAT THE PRICE OF NATURAL GAS IS HORRIBLE DO YOU THINK THAT IF THIS RVW TRUST WELL IFNITS A DECENT PRODUCER THAT EOG RESOURCES WOULD POSSIBLY DRILL MORE VERTICAL WELLS IN THAT AREA DUE TO THE PRICE OF OIL DUE TO THE SITUATION IN THE MIDDLE EAST WHERE OIL COULD EASILY TOP $100 BBL IF A REGIONAL CONFLICT BREAKS OUT THAT THEY WOULD DRILL MORE? IM GOING TO START A NEW BLOG ON MINERAL INTEREST THAT DETAILS WHAT INITIAL PRODUCTION IS AND WHAT THE PLAN IS FOR THE TONKAWA UNIT SITE. ALSO WHY DID THEY START A NEW UNIT WITHIN THE TONKAWA UNIT? I WAS TOLD ANYTHING WITHIN THE CURRENT UNIT WOULD ONLY SWEETEN THE POT OF THE EXISTING TONKAWA UNIT MINERAL INTEREST FOLKS. ANYONE HAVE ANY GUESSES ABOUT WHAT IS GOING ON?
Hottshott, that RVW Trust well may benefit only the mineral owners in the small unit EOG permitted for that vertical well.
Since they permitted it as a wildcat well nothing will be pinned down until a completion report is filed and approved by RRC and the unit designation is recorded but the plat below that EOG filed with the permit shows the boundaries of the RVW Trust unit covering 66.5 acres and lists three mineral owners. The surface boundaries of that smaller unit are within the 1240 acre surface boundaries of the Tonkawa unit but the unit boundaries are different due to the depth where the wells are completed.
Any future wells drilled in the Tonkawa unit will benefit all the Tonkawa mineral owners but it is an Austin Chalk unit. If the vertical well EOG drilled in the RVW Trust unit is completed in a different producing zone, like the Wilcox, the boundaries of that unit will be limited to that higher zone and it will only benefit mineral owners in that separate unit.
Thanks Dusty for the explanation of the new well. It will be interesting to see how much if any this well will produce. Perhaps if is a decent producer which would be fantastic maybe more will be drilled in that vicinity if the RVW trust unit is economically profitable. Also Dusty do you have the latest November production on the Tonkawa? All us landowners appreciate your knowledge and expertise on the oil and gas industry. Thanks again.
Also the Colorado county appraisal district sent me a corrected tax bill for the Tonkawa. They valued it at approximately $2,500 +/_ per acre and is actually a bill it amounts to a property tax of approximately $40. Per acre
Below is production for 2019 through November.
Here is the link to RRC production report site where you can pull future reports. In top Production by Lease section, under Lease Type check Gas Well, in RRC Identifier put 282797 which is the lease number, and under Production Month put in the period you want to see…I put From January 2019 To December 2019 and got what’s below since December numbers haven’t been reported yet. Give it a try
Forgot to say, under District use the pull down arrow to pick 03
I was contacted in November about leasing some property in Colorado county. The bonus money seems pretty low considering all the activity in this area. I don’t have the exact area with me but EOG wants to finish the deal soon and I want to be as informed as possible. Anyone else in talks with them or have an idea what is resonable?
It’s starting to get interesting around the Tonkawa. I have heard that EOG is not renewing some of the leases that they had extensions on. Anyone else?
Looks like the RVW trust well is flaring. Must have found some gas in the Wilcox!
Any report yet on the December production on the Tonkawa unit
Hey Hotshott,
It looks like it was just a little lower than the previous month at 141951 MCF now.
Starting to flatten out from here on out maybe?