In re Applications of Scheck Oil Operation

• Decision Date: 31 August 2020
• Docket Number: 2020-521-TX 2020-522-TX,2020-518-TX,2020-513-TX,2020-517-TX,2020-519-TX,2020-516-TX,2020-514-TX,2020-515-TX,2020-520-TX
• Parties: IN THE MATTERS OF THE APPLICATIONS OF SCHECK OIL OPERATION FOR EXEMPTION FROM AD VALOREM TAXATION IN RUSSELL COUNTY, KANSAS
• Court: Tax Court of Kansas

IN THE MATTERS OF THE APPLICATIONS OF SCHECK OIL OPERATION FOR EXEMPTION FROM AD VALOREM TAXATION IN RUSSELL COUNTY, KANSAS

Nos. 2020-513-TX, 2020-514-TX, 2020-515-TX, 2020-516-TX, 2020-517-TX, 2020-518-TX, 2020-519-TX, 2020-520-TX, 2020-521-TX 2020-522-TX

Tax Court of Kansas

August 31, 2020

ORDER

RONALD C. MASON, CHAIR

Now the above-captioned matters come on for consideration and decision by the Board of Tax Appeals of the State of Kansas.

The Board finds and concludes as follows:

The Board has jurisdiction of the subject matters and the parties as applications for exemption have been filed pursuant to K.S.A. 2018 Supp. 79-213.

The subject matters of these tax exemption applications are described as follows:

Personal property located in SEC 34-15-15, Russell County Kansas, also known as ID #084-MORGENSTERN SOUTH LEASE

Personal property located in SEC 27-15-15, Russell County Kansas, also known as ID #084-MORGENSTERN NORTH LEASE

Personal property located in SEC 27-15-14, Russell County, Kansas, also known as ID #084-NUSS LEASE;

Personal property located in SEC 34-15-14, Russell County, Kansas, also known as ID #084-STRECKER LEASE;

Personal property located in SEC 10-15-13, Russell County, Kansas, also known as ID #084-KAUFMAN #1 & #2 LEASE; 084-ANSCHUTZ A-B LEASE; and 084-HARTMAN-WINTER-WALIZER LEASE;

Personal property located in SEC 29-15-13, Russell County, Kansas, also known as ID #084-SELLENS E & F LEASE;

Personal property located in SEC 17-14-13, Russell County, Kansas, also known as ID #084-EHRLICH B LEASE; and

Personal property located in SEC 34-14-12, Russell County, Kansas, also known as ID # 084-SMOKY RIVER UNIT LEASE.

The applicant acquired the subject leases on June 1, 2019. The applicant requests exemption from ad valorem taxation pursuant to K.S.A. 2018 Supp. 79-20 It, which provides an exemption from ad valorem taxes for "[a]ll oil leases, other than royalty interests therein, the average daily production from which is three barrels or less per producing well, or five barrels or less per producing well which has a completion depth of 2, 000 feet or more."

The County recommends the requests for exemption from ad valorem taxation be granted. The County does not request a hearing.

Based on the record and the County's verified affirmative recommendations, the Board finds that the production from the applicant's leases satisfies the conditions enumerated...