HomeMy WebLinkAbout910362.tiff CRS Services, Inc.
Mineral Economics
April 15, 1991
Mr. Don Warden, Clerk to Board of County Commissioners
County of Weld
915 Tenth Street
Greeley, CO 80631
Dear Mr. Warden:
This letter will confirm our understanding of an engagement
to perform a special examination of Weld County's methodology of
assessing oil and gas personal property.
The purpose of the special examination will be to perform the
following procedures:
(1) Determine the overall reasonableness of the Weld County
assessed valuation for all oil and gas personal property.
This reasonableness test will be calculated using data
from sources deemed appropriate by CRS Services, Inc. .
The objective of this overall reasonableness test will
be to: (a) document the potential for significant
unassessed oil and gas personal property; and, (b)
provide a basis, if appropriate, for modification of the
Colorado Department of Property Taxation "grid system"
within Weld County.
(2) Test the classification of flowlines versus pipelines by
a sample of major oil and gas producers. Flowlines are
defined pipe that extends from the wellhead to the point
of custody transfer to the first purchaser. Pipelines
are defined as pipe that extends beyond the point of
custody transfer to the first purchaser.
(3) Determine the basis for state assessed pipelines within
Weld County. If appropriate, correct assessment errors
and recommend changes to the state assessed methodology.
We will consult Mr. Warden and Mr. Lasell prior to
significantly modifying the above procedures or performing
additional procedures. Upon completion of the above procedures and
any mutually agreed upon additional work, we will submit a report
of our findings.
Main Office - P.O. Box 280203 Lakewood, CO 80228 (303) 234-1137
Q6OaRP` • Cheyenne, WY • Casper, WY
Mr. Don Warden
Page Two
April 15, 1991
Professional fees will be payable at the rate of $60 per hour
up to a maximum of $15, 000.
CRS will cease work on procedures (1) , (2) , (3) or any
additional procedures if, in the judgment of CRS personnel, there
will be no significant monetary benefit to Weld County from the
performance of such procedures.
If this letter defines the arrangements as you understand
them, please sign and date the enclosed copy and return it to us.
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Donald Warden, Clerk to the Charles A. Norman i
Weld County Commissioners CRS Services, Inc.
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