HomeMy WebLinkAbout881114.tiff AMENDED PETITION FOR ABATEMENT OF REFUND OF TAXES
Denver, Colorado, November 3 , 1988
To The Honorable Board of County Commissioners of Weld County
Gentlemen:
The petition of Petrocarbon Energy Corporation* whose
mailing address is : 3333 South Bannock, Suite 450, Englewood,
Colorado 80110
SCHEDULE NUMBER DESCRIPTION OF PROPERTY AS LISTED ON TAX ROLL
U0803587 Unknown
respectfully requests that the taxes assessed against the above
property for the year 1987 are erroneous or illegal for the
following reasons, viz :
(Explain completely why the assessment is erroneous or
illegal)
See Exhibit A.
1987
Value Tax
Orig. $538, 000 $42, 101. 74
Abate. 516, 970 40,456 . 02
Bal . $21, 030 $1, 645 . 72
That he has not paid said taxes . Wherefore your
petitioner prays that the taxes, as aforesaid erroneously or
illegally assessed, may be abated or refunded in the sum of
$40,456 . 02 .
I declare, under penalty of perjury in the second degree
that this petition, together with any accompanying exhibits or
statements, has been examined by me and to the best of my
knowledge, information and belief is true, correct and complete.
PETROCARBON ENERGY CORPORATION,
Petitioner
WELBORN DUFFORD BROWN & TOOLEY, P.C.
By: 1,C„ AgCC.Gto..
K therine F. Beckes
1700 Broadway, Suite 1100
Denver, Colorado 80290-1199
Attorneys for Petitioner
*Successor to Reliance by Agreement of Purchase dated March 13,
1987, effective as of September 1, 1986 .
See Exhibit A for further explanation.
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RESOLUTION OF COUNTY COMMISSIONERS
WHEREAS,The County Commissioners of Weld County,
State of Colorado, at a duly and lawfully called regular meeting held an the. 21st day
of November , A.D. 19....88..,at which meeting there were present the following
members' Chairman Gene R. Brantner, and Commi.aed.onexs..C.W..--.Kisby.,...,Tacc}ueline
Johnson, Gordon E. Lacy and Frank Ya aguchl
rr•uce of such meeting and an opportunity to be present having been given to the taxpayer and
, ,,e Assessor of said County and said Assessor.t.s...Chief_De.puty,..Daswin.And.axs....and taxpayer
represented by Katherine Beckes & K S Pcom and (name)
_.. saaMe1
WHEREAS, The said County Commissioners have carefully considered the within applica-
r;on and are fully advised in relation thereto.
NOW BE IT RESOLVED, That the Board does not concur....with the recommendation of
(concurs pt does not concur)
'r assessor and the petition be denied , and an abatement/refund not be allowed
• (approved or denied) (be allowed or not be allowed)
'. n am assessed valuation of$.. 21,030.00 .for $ 1, 72_. .....total for the year(s) 19..8.7
''
Chairman of Board of County Commissioners.
STATE OF COLORADO,
ss.
County of Weld
I, Mary Ann Feuerstein County Clerk and Ex-officio Clerk
of the Board of County Commissioners in and for the County of Weld
State of Colorado, do hereby certify that the above and foregoing order is truly copied from the
records of the proceedings of the Board of County Commissioners for said Weld
County. now in my office.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said County,
Greeley this 21st day November
j(; -_ .
!//1 County Clerk.
By.._ ` ..,?:1Z.f:2t. -ren 1. z�c-
Deputy.
ACTION OF THE PROPERTY TAX ADMIN1 s RATOR
Denver, Colorado, . 19
The action of the Board of County Commissioners, relative to the within petition, is hereby
•
:11 approved; O approved in part $ ❑ denied for the following reason(s)
ATTEST:
Secretary. Property Tax Administrator.
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MARY ANN FEUERSTEIN
WELD COUNTY CLERK AND RECORDER
I P.O. BOX 758
GREELEY, COLORADO 80632
,.`.. (303)356-4000 EXT. 4225
COLORADO
November 22, 1988
Petrocarbon Energy Corporation
3333 South Bannock, Suite 450
Englewood, Colorado 80110
Dear Sirs:
On November 21, 1988, the Board of Weld County Commissioners considered your
petition for tax abatement concerning Schedule Number U0803587 and denied
same.
Pursuant to Section 39-2-125(F) , C.R.S. , you have the right to appeal this
decision to the State Board of Assessment Appeals within thirty days. You
may obtain the appropriate forms and instructions from the Board of
Assessment Appeals, Department of Local Affairs, 1313 Sherman Street - Room
420, Denver, Colorado 80203.
Sincerely,
Mary Ann Feuerstein
Weld County Clerk and Recorder and Clerk
to the Board 1N-117Miln L Co te-/Ll;
eputy unty C e k
XC: Katherine F. Beckes
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WELBORN DUFFORD BROWN 8 TOOLEY, P.C.
ROBERT F. WELBORN ATTORNEYS AT LAW STEPHEN J. SULLIVAN
PHILIP G. DUFFORD SUITE 1100 DOUGLAS P. RUEGSEGGER
THOMAS G. BROWN EDWARD D.WHITE
DALE TOOLEY (1933-1985) 1700 BROADWAY PEGGY J. ANDERSON
DAVID W. FURGASON DENVER,COLORADO 80290-1199 KEITH D.TOOLEY
WILLIAM C. ROBB SASHA A. KARPOV
JOHN F. WELBORN TELEPHONE (303) 861-8013 KATHERINE F. BECKES
BEVERLY J.QUAIL TELECOPIER (303) 832-3804 SCOTT J. MIKULECKY
RICHARD L.FANYO JOHN S.COWAN
KATHRYN L. POWERS MARLA E.VALDEZ
PHILLIP D. BARBER
GREGORY A.RUEGSEGGER
JOHN F. MECK
RANDALL J. FEUERSTEIN
S. KIRK INGEBRETSEN November 3, 1988 -- ----
Thomas O. David, Esq. E NOV [ 1988
Weld County Attorney
P.O. Box 1948
Greeley, CO 80632
Re: Amended Petition of Petrocarbon Energy Corporation
for Abatement of Taxes
Dear Tom:
I am enclosing an Amended Petition for Abatement of Taxes
on behalf of Petrocarbon Energy Corporation. Apparently, the
total assessed value for 1988 of all components of the Jupiter
Gas Pipeline was $21, 030, not $2, 920 as we had earlier
thought . This Amended Petition reflects the correct value for
1988, as provided to Kevin Powers of Petrocarbon by Vera Hoff
of the Weld County Assessor ' s office.
If you require any additional information, please give me
a call .
Very truly yours,
WELBORN DUFFORD BROWN & TOOLEY, P.C.
K therine F. Beckes
KFB/kw
Enclosures
cc: Darry Ferguson (w/encls . )
0017Q
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1 _ - 1• 'MAKE CHECKS PAYABLE TO -- - ---
J 1 4 i
1987 TAX NOTICE - CORRECTED CORPORATE PROPERTY FRANCIS M.LOUSTALET
_ -;+_ /WELD COUNTV TREASURER
IPELINE COMPANIE.a -C27 ' "
y P.O.BOX 458 GREELEY,CO 80632-0458
PHONE 356-4000 SCHEDULE I
U 0803587 P
r - DUE FEB 29 1ST HALF 21 .050.87 •H7H
VALLI=DN VALUATION MEAL '`ELAND IMMORPER. I VALUM1ON LEVY DUE JULY 31 . 2ND HALF 211050.87 1 ,'1
- - DUE ''APR 30 TOTAL 42,101.74
. _ - }
RCEL PIN U 0803587 DLsr 8035 ,�
. -.RELIANCE GAS RKETING CO - . . ' _ f
C/O SCO CARDIS i _ - I couEcTED
1667 LE BLVD _ - 1 PAID BY
‘" G EN CO 80401 , � Hddl
. . PflE°O1-880 Jo , I�I
6ia s So KI PL/n1G' salT6 2-d� IF YOU NEED OUR RECEIPT PLEASE CHECK HERE I_I t
' u1TIrCTDTCp---80143__. --._.. -._ - - ':
CHEDULE `: U 0803587 . '- ::DETACH rox?CUR RECDHDS - PARCEL NUMBER '
COUNTY OF WELD,STATE OF COLORADO ,C
_
AX Dlst®cr 8035 -.1987 TAX NOTICE' � c
TA:; •UTH.•ITY ;., . LEVY TAX TAX •UTH. 'ITY LEVY - - TAX l
''2 ;`223x;^ Y-; L., .: ";_. . , -.R.- . .,
IF LOAN COMPANY IS RESPONSIBLE FOR THIS
TAX, RETAIN THIS :ILL FOR YOUR FILES.
. 42;101 .74 !
WITHOUT STATE AID.THE SCHOOL PROPERTY
TAX MILL LEVY WOULD HAVE BEEN GENERAL - .1
.-. -, :. TAXES ARE DUE AND PAYABLE JANUARY 1 , i
• IMPORTANT SEE REVERSE SIDE I i
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r;wPENCOR „≥'-:.�
Petrocarbon Energy Corporation
February 18, 1988
Mr. Richard Timberlake
Division of Property Taxation
1313 Sherman Street
Denver, Colorado 80203
Re: Reliance Pipeline Company
Gas Gathering Pipeline
Dear Mr. Timberlake:
On March 13, 1987 Petrocarbon Energy Corporation closed on the
acquisition of a Gas Gathering Pipeline and related contracts with Reliance
Pipeline Company. The acquisition had an effective date of September 1,
1986. A 1987 Annual Statement of Property form should have been furnished
to Petrocarbon for filing by April 15, 1987. Due to the date of the sale,
the 1987 Annual Statement of Property filed by Reliance Pipeline Company on
April 15, 1987 was filed in error. Petrocarbon, at this time, is prepared
to file a proper and correct 1987 Annual Statement of Property for the
acquired pipeline so that we can get an accurate valuation. Please forward
us the 1987 Annual Statement of Property forms so that we can promptly
complete them and remit the correct taxes in a timely fashion. Attached
and enclosed is the tax notice which resulted from the Annual Statement of
Property that was filed in error by Reliance Pipeline Company.
We apologize for the confusion and look forwad to receipt of the forms
promptly.
Sincerely,
PETROCARBON ENERGY CORPORATION
+`7M.
Wm. Kevin Powers
Vice President/Controller
KP/dsb
cc: Ms. Vickie R. Gross
Reliance Gas Marketing
1050 Seventeenth Street, Suite 1100
Denver, Colorado 80265-1101
Weld County Treasurer
P.O. Box 458
Greeley, Colorado 80632-0458
0795 West c^el/ev.ew, Li'1 etor Colc aao 80727 (303) 972-2970
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EXHIBIT A
TO
AMENDED PETITION OF PETROCARBON ENERGY CORPORATION
FOR ABATEMENT OR REFUND OF TAXES FOR 1987
Petitioner, Petrocarbon Energy Corporation, pursuant to
C.R. S. § 39-10-114 , respectfully requests an abatement of Weld
County property taxes assessed for the year 1987 upon that
property known as the Jupiter Gas Pipeline. In support of its
Petition for Abatement, Petrocarbon offers the following :
1. The Jupiter Gas Pipeline is a gas gathering system and
related appurtenances located in Weld County, Colorado.
The gas gathering system was installed during 1985 and
1986 by the Jupiter Gas Gathering System Joint Venture, a
Texas general partnership. Reliance Pipeline Company, a
Delaware corporation, is a general partner in Jupiter Gas
Gathering System Joint Venture. Reliance Gas Marketing
Co. is believed to be a subsidiary corporation of
Reliance Pipeline Company and is the registered agent of
Reliance Pipeline Company in Colorado. The Jupiter Gas
Gathering System Joint Venture, Reliance Pipeline Company
and Reliance Gas Marketing Co. are collectively referred
to herein as "Reliance. "
2 . Petrocarbon Energy Corporation ( "Petrocarbon") entered
into an Agreement as of September 1, 1986, to purchase
the Jupiter Gas Pipeline from the Jupiter Gathering
System Joint Venture. The closing documents were
executed on March 17, 1987 . An Assignment and Bill of
Sale evidencing the transfer was recorded in the Weld
County property records on April 14, 1987 .
3 . Reliance is classified as a "public utility" within the
meaning of C.R. S. § 39-4-101(3) , based upon its
activities as a gas pipeline carrier company.
Accordingly, when Reliance was considered the owner of
the Jupiter Gas Pipeline, the pipeline was valued for
Colorado property tax purposes by the Colorado Property
Tax Administrator pursuant to C.R.S. § 39-4-101, et seq.
However, Petrocarbon is not in the business of
transporting oil or gas on behalf of any other parties;
rather, its sole purpose in acquiring the Jupiter Gas
Pipeline was for use in transporting Petrocarbon' s own
natural gas to a sales line. Therefore, Petrocarbon is
not classified as a gas pipeline carrier company within
the meaning of C.R.S. § 39-4-101(3) . As a result,
commencing with Petrocarbon' s purchase of the gas
pipeline, the procedures for evaluation and assessment of
public utilities contained in Article 4 of Title 39 of
the Colorado Revised Statutes are no longer applicable.
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4 . On April 15, 1987, subsequent to the March 13, 1987
closing, Reliance filed an Annual Statement of Property,
Form PT-87, for the year ending December 31, 1986 .
Believing itself to be the owner of the Jupiter Gas
Pipeline as of January 1, 1987, Reliance included on
Jupiter ' s Annual Statement of Property the net book value
of the gas pipeline system as of December 31, 1986 . That
net book value was $538, 911 . 90 .
5 . Reliance also reported gross operating revenues and net
utility operating income for the year ended December 31,
1986 of $593, 662 .35 and $238, 330 .29, respectively. These
amounts were based upon the provisions of a contract held
by Reliance to transmit natural gas as a common carrier .
As part of the acquisition by Petrocarbon, this contract
was terminated effective September 1, 1986 . In fact,
Reliance realized only approximately $100, 000 of the
$593, 662 . 35 which Reliance reported as gross operating
revenue for 1986 . Because Reliance filed its Annual
Statement of Property more than seven months subsequent
to the effective date of the sale and approximately one
month subsequent to the closing of the transaction,
Reliance was aware that its actual gross operating
revenues were substantially lower than its accrued gross
operating revenues . However, Reliance did not indicate
this fact to the Colorado Property Tax Administrator .
6 . On or about June 1, 1987, the Colorado Property Tax
Administrator furnished to Reliance a 1987 Notice of
Valuation, indicating that the assessed value of property
owned by Reliance and located in Weld County was
$538, 000 . 00 . Despite the property having been sold to
Petrocarbon as of September 1, 1986, Reliance did not
furnish this Notice of Valuation to Petrocarbon until
February 17, 1988 .
7 . In early 1988, the Weld County Treasurer issued to
Reliance a 1987 tax notice showing a total valuation of
$2, 690, 000 . 00 and property taxes due of $42, 101 . 74 . The
1987 tax notice covers property listed on Schedule U
0803587, Weld County Tax District 8035 . Shortly
thereafter, Reliance forwarded the tax notice to
Petrocarbon. This was the earliest date on which
Petrocarbon received any indication that an error in
valuation may have occurred.
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8 . Petrocarbon immediately contacted the Weld County
Assessor ' s office and the Colorado Division of Property
Taxation in an effort to correct the valuation error.
Because the sale to Petrocarbon took effect as of
September 1, 1986, Petrocarbon believes that the
inclusion by Reliance of the gas gathering system on
Reliance' s Annual Statement of Property for 1987 was in
error. The sales price allocated to the gas gathering
system and other personal property purchased by
Petrocarbon from Reliance was approximately $87, 000 .
Despite the fact that Reliance filed it Annual Statement
of Property for 1987 subsequent to the closing of the
sale to Petrocarbon, Reliance furnished to the Colorado
Property Tax Administrator no information as to (1) the
effective date of the sale; (2) the nature of
Petrocarbon' s business activities (i .e. , that the buyer
was not a public utility) ; (3) the actual operating
revenues realized by Reliance during 1986; or (4) the
portion of the sales price allocated to the pipeline.
9 . Petrocarbon has no access to Reliance ' s records
concerning this matter for years prior to 1987 . However,
based on information furnished by the Weld County
Attorney' s office, Petrocarbon believes that the assessed
value of the Jupiter Gas Pipeline for the 1986 tax year
was approximately $111, 000 .
10 . Petrocarbon, as owner of the Jupiter Gas Pipeline on
January 1, 1988, filed with Weld County an Oil and Gas
Real and Personal Property Declaration Schedule showing
Petrocarbon' s cost of acquiring the Jupiter Gas Pipeline
as approximately $90, 000 (including approximately $3, 000
of improvements subsequent to purchase) . Based upon this
information, the Weld County Assessor issued two Notices
of Assessed Valuation for 1988 indicating a total
assessed value of $21, 030 for the Jupiter Gas Pipeline.
11 . C.R.S. § 39-10-114 provides, in pertinent part, that :
[i] f taxes have been levied erroneously or
illegally, whether due to erroneous
valuation for assessment, irregularity in
levying, or clerical error, the treasurer
shall report the amount thereof to the
board of county commissioners, who shall
proceed to abate such taxes in the manner
provided by law. . . . However, in no
case shall an abatement or refund of taxes
be made more than six years after the
taxes were due.
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12 . The gross disparity in assessed valuation among the three
years 1985 through 1987 ($111, 000 in 1986; $538, 000 in
1987; $21, 030 in 1988) strongly suggests an erroneous
valuation and a resulting overassessment of taxes for
1987 . In fact, Mr. Richard Timberlake of the Colorado
Property Tax Administrator ' s office, during a telephone
conversation with Petrocarbon' s counsel on October 31,
1988, indicated that, had the information described in
paragraph 8 above been furnished to the Colorado Property
Tax Administrator, the 1987 valuation would have taken
into account the evidence as to true fair market value.
13 . Petrocarbon, as the successor in interest to Reliance,
has standing to pursue this request for abatement. See
Phillips v. Board of County Commissioners, 78 Colo . 387,
242 P. 70 (1925) .
14 . A request for abatement pursuant to C.R. S. § 39-10-114 is
the proper procedure under the circumstances described
herein. This statute has been construed to provide a
taxpayer relief from overassessment of property in
situations where his knowledge of the excessive charge is
acquired subsequent to the usual statutory deadlines for
protest . Modular Communities Inc. v. McKnight, 191 Colo.
101, 550 P. 2d 866 (1976) . Petrocarbon' s request for
abatement is timely, based upon the six-year statute
provided in C.R.S. § 39-10-114 .
15 . Because the sale to Petrocarbon became effective as of
September 1, 1986, the property was not properly
includable on Reliance' s Statement of Annual Property for
1987 and the Jupiter Gas Pipeline should not have been
valued by the Colorado Property Tax Administrator for
1987 assessment purposes . Alternatively, the information
which Reliance provided to the Colorado Property Tax
Administrator was either erroneous or insufficient to
permit the Colorado Property Tax Administrator to
properly value the property. Under either theory,
Petrocarbon is entitled to relief from the erroneous
valuation under C.R.S. § 39-10-114 . Petrocarbon believes
that the assessed value for 1987 should approximately
equal the assessed value for 1988, or $21, 030, resulting
in a proper tax for 1987 of approximately $1, 645 . 72 .
Based on the foregoing, Petrocarbon Energy Corporation
respectfully requests a correction of the assessed valuation
and an abatement of taxes as indicated on the Petition for
Abatement or Refund of Taxes to which this Exhibit A is
attached.
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