Replies to This Discussion

Permalink Reply by E Hickle on February 4, 2012 at 9:33am

My family and I have been paying property tax on minerals for about 200 a in Jeff Cty OH since 1947.   My family owns half intrest of the mineral rights.  The surface owner has the other half.  The tax went up a LOT this past year.   When my family signed with a O&G Co to lease the O&G we were told we we did not own them, then when we questioned this we were told by the O&G Co we wouldn't get any money except the royalties.   This does not make sense to me.   If you pay taxes on mineral rights surely they canot just revert to the landowner?   or can they??  If you don't have a lawyer and money to fight it I guess anything can happen!!!!!!

Permalink Reply by Billy Park Whyde on February 4, 2012 at 10:00am

I do not know if you have taken the time research the documents. There are different terms that can get confused and terms that sometimes used loosely.

  Whoever has the lease (this is not always the owner or owners of a well) has the mineral rights. In general terms the lessor will be getting a ROYALTY. A person that has WORKING INTEREST will get proceeds from the well (this could be loosely be termed as a royalty but is not a royalty)

 The term of minerals also has a few different applications as well depending upon locality. In coal producing regions it was coal they referring too, as a matter of fact the term of gas being a mineral has a few legal chuck holes.

  What you can do is take the time to get the documents from your county recorders office and review them.  If you can not understand them throw your questions to the GOM  we might be able to help. Then if the questions have been defined see if you can find a oil and gas attorney in your area that will give you a free consultation where you get the answers at.  He should be able to answer the questions and perhaps be of help. Why pay an attorney $$$ to read over your documents in full? You want a brief meeting with him with your questions at hand. Make  several copies break out the highlighter and mark the areas you want the attorney to look at as well as your own that way you will not miss your free opportunity for the answers. It might not be a high priced solution. Good luck

Permalink Reply by Kathleen on February 3, 2012 at 7:29am

Since we learn as we go I know the newer O/G leases protect you from a tax increase due to almost anything the auditor could think of to raise your taxes concerning O/G.  They state the oil company has to pay the difference even if it's a cauv change.  Everyone should make sure this is in your contracts if at all possible.

Permalink Reply by Utica Shale on February 3, 2012 at 8:03am

Kathleen,

 

 OK, let' say my real estate taxes increases $500 because the land value has increased.

 We all know the land value has increased due to the Oil & Gas activity but

 how does the landowner prove that the O&G Leesee is responsible for that $500 Tax increase?

 

 Does your lease state the Driller will pay any increase in taxes due to an increase in land value?

Permalink Reply by Billy Park Whyde on February 3, 2012 at 8:22am

But according to environmentalist it decreases your land value? 

Permalink Reply by Kathleen on February 3, 2012 at 1:32pm

The auditor has to say what drove the price up.  The public would demand it.

My lease has two sections on taxes, the first one I think is common since I"ve seen it in other leases but I honestly don't know.  It's Ad Valorem which covers property taxes in it's definition and cover reserves also.

The second section also talks about any government program or legislation that charges us by doing roll backs, tax abatements not limited too Cauv, Clean and green (more items are listed) the Leesee is repsponsible to pay the difference the lease caused. 

The Leesee is also responsible for all severence and exsize taxes  (I know I spelled that wrong :0) )

Kath

Permalink Reply by 0i7okn54zwbdo on February 3, 2012 at 3:25pm

Property tax is based on a percentage of the assessed value.  In Carroll county the mineral value is currently $150/acre.  They are considering raising that by a factor of almost 10.  That means land owners would pay the same percentage but the assessed value would go up.

Permalink Reply by Billy Park Whyde on February 3, 2012 at 5:10pm

Was that value set upon coal?

Permalink Reply by 0i7okn54zwbdo on February 4, 2012 at 6:42pm

No idea.  It was set by a bureaucrat so they could very well have pulled it out of thin air three decades ago.

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