In re Applications of Production Drilling, Inc.

• Decision Date: 31 August 2020
• Docket Number: 2020-634-TX,2020-631-TX,2020-635-TX,2020-637-TX,2020-632-TX,2020-636-TX,2020-633-TX
• Parties: IN THE MATTERS OF THE APPLICATIONS OF PRODUCTION DRILLING, INC. FOR EXEMPTION FROM AD VALOREM TAXATION IN ROOKS COUNTY, KANSAS
• Court: Tax Court of Kansas

IN THE MATTERS OF THE APPLICATIONS OF PRODUCTION DRILLING, INC. FOR EXEMPTION FROM AD VALOREM TAXATION IN ROOKS COUNTY, KANSAS

Nos. 2020-631-TX, 2020-632-TX, 2020-633-TX, 2020-634-TX, 2020-635-TX, 2020-636-TX, 2020-637-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 17-9-19, Rooks County Kansas, also known as ID #082-STULL #5 LEASE

Personal property located in SEC 8-9-19, Rooks County Kansas, also known as ID #082-STULL B LEASE and 082-STULL A LEASE

Personal property located in SEC 11-10-19, Rooks County, Kansas, also known as ID #082-HUSTED B LEASE;

Personal property located in SEC 9-10-19, Rooks County, Kansas, also known as ID #082-HAMMERSCHMIDT LEASE and 082-BALDWIN LEASE; and

Personal property located in SEC 32-9-19, Rooks County, Kansas, also known as ID #082-ALLPHIN #1 LEASE.

The applicant acquired the subject leases on May 1, 2019. The applicant requests exemptions 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 exemptions from ad valorem taxation be granted. The County does not request a hearing.

Based on the records and the County's verified affirmative recommendations, the Board finds that the production from the applicant's leases satisfies the conditions enumerated in K.S.A. 2018 Supp. 79-201t(a).

IT IS THEREFORE ORDERED that the applications for exemption from ad valorem taxation are granted commencing with the ad valorem personal property taxes assessed on the applicant's 2019 oil production, and each succeeding year, so long as the property continues to be used for exempt purposes. In the event the exempt property ceases to be used for...