HomeMy WebLinkAbout20253503 Resolution
Approve Amendment to Purchase of Professional Services Agreement for Oil and
Gas Audits and Evaluation Services, and Authorize Chair to Sign — Martindale
Consultants, Inc.
Whereas, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
Whereas, the Board has been presented with an Amendment to the Purchase of
Professional Services Agreement for Oil and Gas Audits and Evaluation Services
between the County of Weld, State of Colorado, by and through the Board of County
Commissioners of Weld County, and Martindale Consultants, Inc., commencing
December 10, 2025, and ending December 31, 2026, with further terms and conditions
being as stated in said amendment, and
Whereas, Section 5-4-80 of the Weld County Code, Expenditures Not Requiring a
Procurement Process, exempts professional services that do not lend themselves to
competitive bidding due to experience, education, expertise, for technical or specialized
services with approval of the Board of County Commissioners, and
Whereas, after review, the Board deems it advisable to approve said agreement, a copy
of which is attached hereto and incorporated herein by reference.
Now, therefore, be it resolved by the Board of County Commissioners of Weld County,
Colorado, that the Amendment to the Purchase of Professional Services Agreement for
Oil and Gas Audits and Evaluation Services between the County of Weld, State of
Colorado, by and through the Board of County Commissioners of Weld County, and
Martindale Consultants, Inc., be, and hereby is, approved.
Be it further resolved by the Board that the Chair be, and hereby is, authorized to sign
said agreement.
The Board of County Commissioners of Weld County, Colorado, approved the above
and foregoing Resolution, on motion duly made and seconded, by the following vote on
the 17th day of December, A.D., 2025, nunc pro tunc December 10, 2025:
[Insert Resolution Attestation Block Post Meeting]
2025-3503
F10082
BC0059
BOARD OF COUNTY COMMISSIONERS
PASS-AROUND REVIEW
PASS-AROUND TITLE: Martindale contract extension through 2026 for assessed value audits
DEPARTMENT: Finance and Assessor's Office DATE: 12/12/25
PERSON REQUESTING: Jennifer Oftelie
Brief description of the problem/issue:
Since 2014,Martindale has been contracted by Weld County to assist in external audits of oil and gas companies to ensure they are paying the proper
amount of taxes each year based on the equipment owned.This fee based schedule is attached,and Weld has paid approximately$474,873 since
2022,and has resulted in over$11.6 million In additional tax revenue being collected in that same time period by Weld County,and proportionately
distributed to all affected local governments,including Weld.We also calculate staff time and reimburse Weld for those additional distributions.
What options exist for the Board?
The board can choose to sign the contract amendment,or not sign the amendment.
By not signing the amendment,all current audits with Martindale could be left uncompleted,leaving revenues uncollected,and putting us in a place to
Immediately begin a new RFP process for a consultant to do this work.As a note,best practices means that we intend to complete an RFP In 2026 for
2027 and later audits,getting on a five year schedule to rebid this service.
Consequences:
The Assessor's Office is aware of at least one entity that Is Intended to be audited in 2026.If the contract Is not signed,Martindale will not
perform their audit services.This would most likely result in a significant amount of revenue loss for the taxing entities,including Weld.
Impacts:
Cost(Current Fiscal Year/Ongoing or Subsequent Fiscal Years:
See Exhibit A of the contract.The total cost is an additional$180,000 for the audits being completed In 2026.
Recommendation:
We respectfully ask to extend this contract for one more year.
Finance has worked with the County Attorney and Purchasing to agree to rebid these services in 2026 for future years,however with Finance being
short a significant position(CFO),we were not able to revisit this in a timely manner in 2025.The working relationship with Martindale and the
Assessor's Office has been solid,and the Assessor would like to continue utilizing their services.
Support Recommendation Schedule
Place on BOCC Agenda Work Session Other/Comments:
Perry L. Buck
Scott K.James
Jason S. Maxey a
Lynette Peppler
Kevin D. Ross
2025-3503
0 OZ
AMENDMENT TO PURCHASE OF PROFESSIONAL SERVICES AGREEMENT
OIL AND GAS AUDITS AND EVALUATION SERVICES
This AMENDED PURCHASE OF PROFESSIONAL SERVICES AGREEMENT ("Agreement") is
made this 10th day of December 2025, by and between County of Weld, a body politic and
corporate of the State of Colorado, by and through the Board of County Commissioners of the
County of Weld whose address or principal place of business is 1150 "O" Street, Greeley,
Colorado 80631, and on behalf of the Weld County Assessor, (hereinafter "BOCC"), and
Martindale Consultants, Inc. an Oklahoma corporation whose principal office is located at 4242
North Meridian Avenue, Oklahoma City, Oklahoma 73112, registered in the State of Colorado,
with a registered agent, InCorp Services, Inc., located at 36 South 18'h Street, Brighton, Colorado
80601, and with Colorado offices located at 4581 Julian, Denver, Colorado 80211, (hereinafter
Contractor").
WHEREAS, on the 3rd day of December, 2012, BOCC entered into an Agreement with
Contractor to provide professional audit services to assist the Weld County Assessor in the
evaluation of appeals of the ad valorem assessments on oil and gas production and on the
personal property used in the production process made by made by oil and gas production
operators, and
WHEREAS, the said agreement has been amended several times to extend the
Agreement to December 31, 2026, and
WHEREAS, BOCC has now determined that additional professional audit and consulting
services would continue to assist the Weld County Finance Department in the evaluation of the
accuracy of the records of royalty payments made to Weld County, and
WHEREAS, BOCC has determined that additional professional audit and consulting
services would also continue to assist the Weld County Assessor in the evaluation and
assessment of oil and gas production for ad valorem tax purposes, and
WHEREAS, Contractor has the expertise to perform the audits required, to provide the
consulting services, has the time available to timely perform those services, and is willing to
perform the services according to the terms of this Agreement and in accordance with the
applicable policies of BOCC and the Weld County Assessor, and
WHEREAS, BOCC has authority to acquire the services described in this Agreement
pursuant to the provisions of§30-11-101, et seq., C.R.S., as amended, and.
WHEREAS,the Weld County Assessor wishes to and has authority to acquire the services
of a Contractor to assist it in the examination and analysis of the records of the operator(s) of oil
and gas leaseholds as described in this Agreement pursuant to the provisions § 39-5-120, § 39-
21-109 and § 39-7-105, et seq., C.R.S., as amended, and
WHEREAS, BOCC and Contractor now wish to amend the term of the Agreements of
December 3, 2012, and include the new schedule of fees to be charged during the extended term,
attached as Exhibit A, and
WHEREAS, BOCC and Contractor now wish to amend the term of the Agreements of
December 3, 2012, paragraph 3d. to modify the not to exceed amount for this contract from
$1,660,000.00 to$1,840,000.00,an increase of$180,000.00. This increase is in order to continue
utilizing the services under this contract after the $1,660,000.00 amount has been reached.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth
hereinafter, BOCC and Contractor agree as follows:
Term of Agreement: Services of the Contractor shall continue to commence on the 10th
day of December 2025, and shall be completed by the 31st of December 2026, and the not to
exceed amount found in paragraph 3d of the December 3, 2012 agreement is increased to
$1,840,000.00. This Agreement will terminate on the date set forth above unless renewed in
writing at least thirty (30) days prior to the date of completion.
The attached Exhibit A shall be the schedule of fees charged during this extended term.
All other terms and conditions of the agreement remain the same.
IN WITNESS WHEREOF, BOCC and Contractor have set their hands and seals.
CONTRACTOR:
ATTEST:
Martindale Consultants, Inc.
(an Oklahoma r tion)
By: �----
Todd J. Attalla -Vice-President
ATTEST: BOARD OF COUNTY COMMISSIONERS
Weld County Clerk to the Board WELD COUNTY, COLORADO
BY:
Deputy Clerk to the Board Perry Buck, Chair 1 7 2025
APPROVED AS TO FUNDING: APPROVED AS TO SUBSTANCE:
Jul;YIC� , Dori C�
Controller Elected Official or Department Head
APPROVED AS TO FORM:
eS;0%,e7P:
County Attorney
2GZS-3S03
EXHIBIT A
Weld County
Contract Period:2026
Hourly Rate Amendment Staff Hourly Rates
Executive Management $250.00
Project Manager $ 160.00- $ 180.00
Experienced Project Lead $ 140.00-$ 160.00
Assisting Staff(based on $ 125.00- $ 140.00
experience level)
Other Support Staff $60.00-$ 125.00
Aik
MARTINDALECONSULTANTSINC.
THE Oil & GAS CONSULTING COMPANY
December 17, 2026
RE: Scope of Work for Weld County
Ad Valorem Tax Audits -2026
Background
The Weld County Assessor's Office requires specialized audit services to ensure the accuracy
and compliance of oil and gas production, income and expense filings submitted by operators
within the county. These audits are essential for maintaining fair and equitable property
valuations and ensuring proper tax assessments.
Objectives
1. Verify the accuracy of reported oil and gas production volumes.
2. Audit netback expense report forms (NERF) for completeness and compliance.
3. Identify and document discrepancies or inconsistencies in operator filings.
4. Ensure compliance with statutory procedures and Colorado Assessor Reference Library
standards.
5. Support accurate valuation and taxation.
Projects
The Assessor's Office has a continual audit program. Each year, we collaborate with the
Assessor staff to analyze filers and tax years for audit selection based on submitted NERF
filings.
In addition, the Assessor's Office requires audits of all oil and gas abatements. While
abatements may be submitted at any time, those received are prioritized to ensure compliance
with the statutory requirement that action be taken within six months of the filing date.
General Audit Scope of Work and Deliverables
There are typically 4 phases of the audit for each operator or company:
1. Preparation
2. Fieldwork
3. Reporting
4. Resolution
Corporate Office 14100 Perimeter Center Drive, Suite 300 I Oklahoma City, OK 73112
Phone: 405.728.3003 I Fax 405.728.3893 I www.marticons.com
MARTINDALECONSULTANTSINC.
THE OIL & GAS CONSULTING COMPANY
Each audit will vary due to the documentation available from the Operator and the situations
encountered during the audit. Weld County personnel is involved in assessing,scope,and decision
making throughout all audit program steps; we will develop our approach and coordination with
continuous communication and interaction with Weld County personnel.
If an audit is active and Weld County is presented with an abatement,we will make available time
and resources to accommodate the accelerated timeline required by such abatement while still
working towards completing the active audit within the annual budget.
Preparation
1. Obtain NERFs and any other related oil and gas reports from the Weld County Assessor's
Office to document the Declared Volumes and Values by Operator.
2. Request supporting documentation from the Taxpayer:
a. Electronic schedules/spreadsheets/etc. from which the annual revenue amounts by well
were assimilated for its tax return, identifying the volumes, values, related party
deductions, and unrelated party deductions by product and well. This data shall
include,but is not limited to:well number,well name,production month,product code
and description, volumes (Mcf and MMBtu for Gas, gallons or barrels for NGLs, and
barrels for Oil), values, prices, deductions(broken out by deduction code/type/etc.).
b. Electronic take-in-kind owner information (if any) for declared revenues, unrelated
party deductions,and unrelated party deductions.
c. Electronic line-item cost detail that sums to the yearly declared totals for wellsite
processing deductions by well and NERF category (Salaries & Wages, Direct G&A,
etc.). This data shall include, but is not limited to: property number, property name,
service dates,transaction description, vendor, amount, etc.
d. Electronic cost detail by exempt owner entity name, percentage, and amount paid by
month that sums to the yearly declared totals.
e. Schematic showing all wells, gathering systems, and transportation pipelines owned
and/or used to deliver sales; all processing plants and/or treating plants through which
production was processed during the audit time period.
Fieldwork
3. Reconcile the data received from the Taxpayer to the tax return.
Corporate Office 14100 Perimeter Center Drive, Suite 300 I Oklahoma City, OK 73112
Phone:405.728.3003 I Fax 405.728.3893 I www.marticons.com
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MARTINDALECONSULTANTSINC.
I III Uu. G GAS CONSULTING COMPANY
4. Analyze the revenue, related party, and unrelated party data to identify anomalies,trends, and
materiality; select appropriate test months based on exposures identified in the analysis.
a. Sample documentation that could be requested includes meter statements and LACT
statements for all measurement points,third-party purchaser invoices for sold volumes,
third-party invoices for deductions incurred to sell products, gas plant statements,
gathering, transportation, processing,and purchase contracts, etc.
5. Analyze the expense data to determine audit strategy to effectively and efficiently review
wellsite processing deductions on a sample basis and extrapolate findings when appropriate.
a. Sample documentation that could be requested includes voucher/invoice requests,
declaration percentages (if used) for certain accounts or NERF categories, operation
information to corroborate certain deductions are accurate, etc.
b. Additional request may be made at any time during the audit if needed.
6. Review compliance with Colorado statutory guidelines and standards established in Assessor
Reference Library 3, Chapter 6.
7. Quantify all underpayments, identified separately by type of exception, for each well for each
month of the reporting period. Summarize total underpayment by Taxpayer for each type of
exception for the audit period or applicable Tax Year. If no netback value underpayments are
identified, we will compile an audit closure letter after thorough and comprehensive
• discussions and acceptance of findings by Weld County.
Reporting
8. Assimilate all findings into an audit report, including all necessary supporting schedules.
9. Submit to Weld County for approval.
10. Issue the report to the Taxpayer.
11. Provide copies of supporting detail (schedules and documents) for all adjustments necessary
for the Taxpayer to understand and agree with the computation of the underreported netback
value.
Corporate Office 14100 Perimeter Center Drive, Suite 300 I Oklahoma City, OK 73112
Phone: 405.728.3003 I Fax 405.728.3893 I www.marticons.com
Aft
MARTINDALECONSULTANTSINC.
THE OIL A GAS CONSULTING COMPANY
Resolution
12.Negotiate and resolve all disputed items before and/or after Special Notice of Valuation is
issued by Weld County and ultimately aid in creating the Special Notice of Determination for
which the new revised tax will be based upon.
13. Develop and submit modified NERF to Weld County.
Regards,
Todd Attalla, CFE
Executive Vice President I Director
Martindale Consultants, Inc.
Office: (405) 728-3003 Ext. 1201
Mobile: (405)412-9866.
Corporate Office 14100 Perimeter Center Drive, Suite 300 I Oklahoma City, OK 73112
Phone:405.728.3003 I Fax 405.728.3893 I www.marticons.com
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