Oil & Gas Ad Valorem Property Tax

Oil & Gas Ad Valorem Tax

The valuation of oil and gas properties is a complex and specialized process, requiring expertise and specific knowledge of the various producing regions throughout the U.S. We are fortunate to have assembled a talented group of professionals that understand the technical aspect of appraisal but also can articulate the facts that allow for resolution. Relationships built over 40 years with assessing authorities allows for positive communication and a smooth valuation process. We represent the lion’s share of oil and gas wells and leases nationwide, almost 35% of all of the Texas & Louisiana production and 40%+ in the Rocky Mountain Region.

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The Property Tax Cycle

01

FILE

At the beginning of the year, our team will request pertinent information that is crucial for the aggressive filing of renditions and the analysis of your wells or leases. In many states, the information is crucial in delivering the right rendition on an oil and gas producing well. Strategy begins with good information.

02

ANALYZE

Once we’ve received all of the facts on your properties allowing us to perform our own DCF models and appraisals, we begin the process of reviewing notices of value as they are issued by the local jurisdictions to determine cases of over-valuation.

03

NEGOTIATE

In cases of over-valuation, KE Andrews will reach out to local assessors and appraisers to aggressively negotiate both informally, and formerly at board hearings in cases where an informal agreement can’t be reached.

04

PROCESS

After values are finalized, we provide annual reports for accrual purposes, and we begin to process your tax bills for payment as they come. We integrate with your accounting systems and also have the ability to pay your physical property tax bills across the country.

60,000+ RRC's

In Texas, oil and gas production is valued at the lease level by the Railroad Commission (RRC). A lease can be made up of numerous wells, or it can be a 1:1 ratio. Our team last year represented the property tax process for over 60,000 in the state, or close to 35% of all production.

Giving you insights into the property tax process

Client Dashboard

Our client dashboard allows our clients access into the property tax process, and where your assets are in the cycle. As we work through properties, the dashboard is updated real-time and allows for important KPI’s to be understood at your fingertips.

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