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RESOLUTION
RE: APPROVE AGREEMENT FOR SERVICES FOR REVIEW OF OIL AND GAS PRODUCTION AND
SALE ASSESSMENTS AND AUTHORIZE CHAIRMAN TO SIGN
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 Agreement for Services
between the Weld County Assessor and CRS Services, Inc. , for reviews and audits
of Weld County's oil and gas production and sale assessments, and
WHEREAS, the terms and conditions are as stated in said agreement, a copy
of which is attached hereto and incorporated herein by reference, and
WHEREAS, Section 29-1-30(1) , C.R.S. , contemplates that the Board is
authorized to enter into such an agreement, and
WHEREAS, after study and review, the Board deems it advisable to approve
said agreement for services.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the Agreement for Services between the Weld County
Assessor and CRS Services, Inc. , for reviews and audits of Weld County's oil and
gas production and sale assessments be, and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chairman be, and hereby is,
authorized to sign said agreement for services.
The above and foregoing Resolution was, on motion duly made and seconded,
adopted ///b���y the following vote on the 27th day of January, A.D. , 1992.
// I A ii /duet
BOARD OF COUNTY COMMISSIONERS
ATTEST: vy (/�
/ WELD CO TY, COLORADO
Weld County Clerk to the B and
/ George Ken dy, airman
BY: ,� 7,4,-- _-a---..- 4:44 c-7�--
deputy Clerk to the Board 'Constance L. Harb rt, Pro-Tem
APPROVED AS T 0 M: —�� - ..-
CC. W. Kir
County Attorney Gord acr
W. H. Webster
�} /1 920056
- ��
AGREEMENT FOR SERVICES
THIS AGREEMENT is made and entered into this Q 7 day of
19 , by and between the County of
Weld, State of Colorado, by and through the BOARD OF COUNTY
COMMISSIONERS OF WELD COUNTY, hereinafter referred to as
"County, " the WELD COUNTY ASSESSOR, hereinafter referred to as
"Assessor" and CRS SERVICES, INC. , hereinafter referred to as
"CRS. "
WHEREAS, the Board of County Commissioners of the County of
Weld, pursuant to Colorado Statute and the Colorado Home Rule
Charter, is vested with the authority of administering the
affairs of Weld County, and
WHEREAS, the Board, in cooperation with the Assessor, seeks
to have reviews and audits performed of the Weld County
Assessor' s assessment rolls for oil and gas leaseholds, lands and
property for the purpose of discovering any such property which
had been previously omitted from the Weld County assessment rolls
due to underreporting of the selling price or the quantity of oil
and gas sold from such property, as intended and authorized by
Section 29-1-301 and 39-10-107, C.R. S. , as amended, and
WHEREAS, CRS and its personnel and employees possess the
qualifications to perform such an audit due the education,
expertise and work experience of the CRS personnel .
NOW, THEREFORE, for and in consideration of the foregoing,
and other good and valuable consideration, the receipt of which
is hereby acknowledged, CRS agrees to provide to County the
following services on the terms and conditions set forth below:
I . Services to be Provided by CRS
Under the specific direction of the Assessor, CRS
personnel shall conduct reviews and audits of the Weld
County Assessor' s assessment rolls pertaining to oil
and gas leaseholds, lands and property. These reviews
and audits shall encompass the period of time allowed
by law for the assessment and collection of taxes on
oil and gas leaseholds, lands and property. The
reviews and audits shall be conducted in accordance II
with the Oil and Gas Review and Audit Procedures
promulgated by the Colorado Division of Property
Taxation, effective January 11, 1992 . A copy of these
procedures is attached to this Agreement as Schedule A
and is incorporated herein as if fully set forth.
Page 1 of 7 Pages
The purpose of the reviews and audits shall be to
verify the Weld County assessment rolls, to discover
any property which had been previously omitted from the
assessment rolls due to underreporting of the selling
price or the quantity of oil and gas sold from such
property, and to make substantiated and verified
recommendations to the Weld County Assessor for
corrections to his assessment rolls .
In this examination, CRS personnel may have access to
any and all information in any form that is otherwise
available to the Weld County Assessor in the
performance of the duties of his elected office so long
as such information is reasonably necessary to fulfill
the terms of this Agreement. CRS and its personnel
specifically acknowledge that the same laws and
regulations governing the use of such information by
the Weld County Assessor apply to any and all uses of
this information by CRS and its personnel .
Particularly, CRS and its personnel acknowledge that
they are bound by the provisions of Section 39-5-120,
C.R.S . , and that any unauthorized release of any
confidential information or documents will be subject
to prosecution under the provisions of Section 39-1-
116, C.R. S. Copies of both statutes are attached
hereto as Schedule B and are incorporated herein as if
fully set forth.
CRS and its personnel may perform the above-referenced
reviews and audits using their discretion as to work
methods, work patterns and work hours . The reviews and
audits may be performed on or off County premises. CRS
is responsible for providing its own clerical support
in conducting the reviews and audits .
CRS and its personnel shall monitor and analyze any and
all property owners ' responses to the reviews and
audits . CRS and its personnel shall assist in any
administrative and/or legal proceedings arising from
and required by the reviews and audits to the
conclusion of all such proceedings .
At the end of the term of this Agreement, CRS and its
personnel shall render a written report to County
summarizing the results of this special examination and
making any recommendations concerning the Weld County
assessment procedures for oil and gas leaseholds, lands
and property. Such reports shall not be distributed by
the County outside of the Weld County Assessor' s Office
and County Departments except to the extent required by
law.
Page 2 of 7 Pages .'' ",OOa6
II . Services to be Provided by County
County shall cooperate with CRS and its personnel to
the extent reasonably necessary for CRS and its
personnel to complete the above-referenced reviews and
audits of the Weld County Assessor' s assessment rolls
for oil and gas leaseholds, lands and property. Such
cooperation may include, but is not limited to,
consultation with County employees and the County
Attorney's Office; provision of certain special reports
by the Weld County Data Processing Department upon
request of CRS personnel; access to County maintained
records and information; assistance in gaining access
to information not in the custody and control of County
or County-elected officials but otherwise available to
County for the purposes set forth in this Agreement.
III . Cost and Reimbursement
The County Assessor and Treasurer will reimburse CRS in
the amount of $50. 00 per hour of work performed by the
CRS personnel conducting the above-referenced special
examination. However, total payment to CRS for all
services performed pursuant to this Agreement shall not
exceed $75, 000 . 00 during the term of this Agreement.
These costs shall be considered costs of the Assessor
and the Weld County Treasurer for purposes of Section
39-10-107 ( 1) , C.R. S. , as amended.
IV. Legal Responsibility
The parties acknowledge that CRS is an independent
contractor for services to County under the terms of
this Agreement; this Agreement does not create an
employment relationship between the parties . Each
party shall provide the necessary Worker's Compensation
Insurance for its own employees at its own cost and
expense.
To the extent authorized by law, CRS shall indemnify,
save, and hold harmless County against any and all
claims, damages, liability, and court awards, including
costs, expenses, and attorneys ' fees incurred as a
result of these reviews and audits . This
indemnification specifically excludes the
administrative and legal processes that occur in the
ordinary course of the property assessment and tax
collection proceedings under Colorado law.
,.a
ICAJI“,3”11
Page 3 of 7 Pages
V. No Benefit to Third Parties
Nothing in this Agreement shall be construed to create
a cause of action and/or civil liability remedy in any
person not a party to this Agreement. This Agreement
exists for the sole benefit of the parties to the
Agreement. The Agreement shall not be construed to
create a duty by either party to any third party where
no such duty otherwise existed.
VI . Duration
The Agreement shall be effective upon final execution
by the appropriate officers of each party. CRS shall
remain responsible under the terms of this Agreement
for all administrative and/or legal processes commenced
as a result of the reviews and audits that are the
subject of this Agreement until final disposition of
those procedures and proceedings .
This Agreement may be terminated by either party by
written notice provided thirty ( 30) days prior to the
proposed date of termination. Such notice shall be
given in accordance with the provisions of Section VII,
below.
VII . Notice
Any notice provided for in this Agreement shall be in
writing and served by personal delivery or by certified
mail, return receipt requested, postage prepaid, at the
following addresses :
CRS Services, Inc.
P. O. Box 280203
Lakewood, CO 80228
Board of County Commissioners
of the County of Weld
915 Tenth Street
Greeley, CO 80631
Any notice so mailed and any notice served by personal
delivery shall be deemed delivered and effective upon
receipt or upon attempted delivery.
VIII . Governing Law
Page 4 of 7 Pages ,-- -
•.iN� ��'w,a
This Agreement shall be construed in accordance with,
and shall be governed by, the laws of the State of
Colorado.
IX. Partial Invalidity
If any provision of this Agreement is declared by any
Court of competent jurisdiction to be invalid for any
reason, such invalidity shall not affect the remaining
portions of the Agreement. On the contrary, such
remaining portions shall be fully severable, and this
Agreement shall be construed and enforced as if such
invalid provisions were deleted.
X. Assignment and Delegation
The County and CRS acknowledge that this Agreement is a
personal services Agreement requiring the obligations
of CRS to be performed directly by Randall F.
Fetterolf, Charles A. Norman, and James S. Wilson.
Neither this Agreement nor any of the obligations
hereunder may be assigned to any third party by CRS
without the prior written consent of County. Failure
by CRS to provide the direct services and supervision
of Randall L. Fetterolf, Charles A. Norman and James S .
Wilson are grounds for immediate termination of this
Agreement upon notice given in accordance with Section
VII . , above.
XI . Headings
The subject of headings of the paragraphs of this
Agreement are included for purposes of convenience only
and shall not affect the construction or interpretation
of any of its provisions . Throughout this Agreement,
the singular shall include the plural, the plural shall
include the singular and the masculine and neuter shall
include the feminine, wherever the context so requires .
XII . Modification and Waiver
This Agreement constitutes the entire understanding and
Agreement between the parties pertaining to the subject
matter contained in it. This Agreement supersedes all
prior and contemporaneous agreements, representations,
and understandings of the parties . No supplement,
Page 5 of 7 Pages
modification or amendment of this Agreement shall be
binding unless executed in writing by both of the
parties . No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver
of any provision, whether or not similar, nor shall any
waiver constitute a continuing waiver. No waiver shall
be binding unless executed in writing by the party
making the waiver.
XIII . Non-Appropriation Clause
In years subsequent to 1992, no portion of this
Agreement shall be deemed to obligate the County or the
Assessor to spend monies not otherwise appropriated for
the purposes set forth in this Agreement.
XIV. Authority
Each signatory to this Agreement represents that he has
full and complete authority to bind that party to
perform any and all provisions of this Agreement.
IN WITNESS WHEREOF, the parties abov named have executed
this Agreement on the 2/7!!1 day ofAt-
A.D. ,
1
BOARD OF COUNTY COMMISSIONERS
ATTEST: ��� WELD COUNTY, COLORADO
Weld unty/Clerk to the Board
BY: �44 `�LL iC By:
Deputy Clerk to therBoOrd eorge Cenne y, Chairman
APPROVED AS 0 FORM:
Co my Attorney
AO&GCRS.RMM
Page 6 of 7 Pages
;:.',100-^, ,
CR SERVICES, INC .
Qr�iY'�Q,y
C arles A. Norman, P esident
n
,--SUBSCRIBED AND SWORN to before me this a day of
,.\Cn(wa\.6H , 19 °J )
WITNESS my hand and official seal . ga 26
Notary Public
My commission expires :
My()om ission Expi es
JUNE 10.1995
Page 7 of 7 Pages
C2Q05I
S C I-1 E DUL E A
1992 Oil and Gas Review and Audit Procedures
o •coLo Colorado Department of Local Affairs
7-%= o' DIVISION OF PROPERTY TAXATION
h a
Mary E. Huddleston
Property Tax Administrator
x 1876
Rov Romer
Governor
TO: All County Assessors
FROM: Mary E. Huddleston *yam
Property Tax Administrator
SUBJECT: 1992 Oil and Gas Review and Audit Procedures
DATE: December 12, 1991
DISTRIBUTION: Review with Oil and Gas Appraisers
File at end of ARL Volume 3, Section VI
MEMORANDUM
The Statutory Advisory Committee to the Property Tax Administrator (SAC)
met on December 11, 1991, and reviewed the attached appraisal procedures
for use in 1992. The SAC has recommended approval to the State Board of
Equalization (SBOE) . The SBOE has thirty days to review the
recommendation of the SAC. If there are changes, you will be advised in
a separate memorandum of the action taken by the SBOE. Otherwise, these
procedures are effective January 11 , 1992.
If you have any questions regarding these procedures, please contact
Bill Hyde at the Division. These procedures will be incorporated into
ARL Volume 3-Land Valuation Manual , Section VI , when it is updated for
the 1992 assessment year.
DW:JRH/jrh
ADUTBULL.DOC •
HYDE NETWORK
Nn
IAAO
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1313 Sherman Street, Room 419, Denver, Colorado 80203, (303) 866-2371
,F.:2003
Section VI , page 6. 15
Review and Audit of Oil and Gas Declaration Information by Assessors,
Treasurers, and their Agents
Statute provides that the assessor may request information from a
taxpayer relating to the actual value of any property located within the
county, 39-5-115(1) , C.R.S. As part of this process, Colorado assessors
may conduct reviews or audits of taxpayer oil and gas declarations , and
request additional information relating to the oil and gas production
and sales amounts associated with specific wells owned and/or operated
by the taxpayer.
A review is defined as an analysis of reported oil and gas sales
volumes, expressed in barrels or MCF, in the DS#658 (Oil and Gas Read
Property Declaration Schedule filed by the taxpayer) compared to
specific reports filed with the Colorado Oil and Gas Conservation
Commission (Form 7 and Form 8) .
An audit is defined as an examination and analysis of taxpayer' s
records, including source documents, regarding sale volumes and sales
price per barrel (or MCF) .
Purpose and Scope:
Colorado Revised Statute 39-2-109(1) (k) requires the Division to develop
guidelines for the review and auditing of oil and gas leaseholds and
lands. These guidelines provide procedures and instruction for review
of taxpayer oil and gas production and sale volume information and
auditing of taxpayer sales price information filed with the county
assessor pursuant to 39-7-101, C.R.S.
The procedures and instructions must be utilized by all county
assessors, county treasurers, and their agents. For the purpose of
these procedures, "agents" are defined as any person or business that
contracts with the county to perform reviews or audits of oil and gas
production records to determine if the amounts declared by taxpayer(s)
to the county are correct.
•
15-DPT-AS
PUB ARL VOL 3 1-89
Revised 1-92
Section VI, page 6.16
General "Review" Procedures:
Counties are permitted to establish reasonable "review" procedures that
they feel would fairly and accurately determine if any discrepancy
exists between the taxpayer's declared oil and gas sales volume and
amounts indicated by other information sources utilized by the county.
However, the following must be included in the county' s "review"
program:
1 . When a taxpayer is selected for a "review", all of the
taxpayer's wells within the same field or unitized operation shall
be included in the review process . The following reports are
sources which can be used for review purposes:
a. Oil and Gas Conservation Commission (0GCC) Form 7 and
Form 8 Reports.
b. Oil and Gas Production Report published by the Petroleum
Information Company.
2. The county assessor must provide the taxpayer with a letter, by
certified mail , indicating that a "review" of that taxpayer's
oil and gas declaration has been conducted. Included in the
letter must be:
a. A listing of the assessment years reviewed.
b. A listing of the wells, leases, units, or fields
reviewed.
c. A listing of the sources used to determine the apparent
volume discrepancy.
d. An explanation of the discrepancy between the taxpayer's
declaration and the source(s) utilized by the county.
Included in the explanation must be a listing of the
taxpayer's declared volumes and the amounts indicated on
the county's source report(s) .
In computing the value of the indicated under-.or-over
-reporting of volume, the county shall utilize the
taxpayer's average price as declared on the taxpayer
declaration for the specific year under review.
e. Any requests for additional information regarding the
taxpayer reporting discrepancy.
15-DPT-AS
PUB ARL VOL 3 1-89
Revised 1-92
-r
Section VI, page 6.17
f. A listing of the taxpayer's rights involving the
"review". Please refer to the Taxpayer "Review" Rights:
section of these guidelines for further information.
3 . If a change in valuation is determined, the county should use
the Division approved Special Notice of Valuation, Special
Notice of Protest, and Special Notice of Determination forms
listed as Addenda 5C. 1, 5F.1, and 5H.1, respectively, in
the ARL Volume 2 - Administrative and Assessment Procedures
Manual . If the county wishes to develop their own form(s) , each
form must be approved by the Division of Property Taxation
prior to use.
A Special Notice of Valuation may only be mailed after the
taxpayer response period has expired. If the taxpayer has
requested additional time, and the assessor has granted it,
the assessor must wait until the complete response period has
expired. The assessor may grant additional time at the request
of the taxpayer, if deemed necessary.
4. If the taxpayer does not provide the requested information or
refuses to make the information available, the assessor may:
a. File in District Court under 39-5-119, C.R.S. ; or
b. Issue a best information available assessment.
Taxpayer "Review" Rights:
The following rights must be provided all taxpayers that are subject to
a county oil and gas "review" :
1 . At the request of the taxpayer, the county must schedule a
meeting to discuss the discrepancies discovered by the county
and receive any further information or response from the
taxpayer.
2. At request of the taxpayer, the assessor must provide the
taxpayer copies of all information used to determine--the
reporting discrepancy. If information from another taxpayer is
used to determine the discrepancy, this information'must be
provided in accordance with 39-5-121 .5, C.R.S. Please refer to
Section I . ARL Volume 3 - Land Valuation Manual 'for additional
information on disclosure of confidential information.
15-DPT-AS
PUB ARL VOL 3 1-89
Revised 1-92
e voo 3
Section VI, page 6. 18
3 . Taxpayers must have at least 30 days to respond to the "review"
notification letter and to provide additional information to
the county regarding the listed discrepancies. The assessor
may grant additional time at the request of the taxpayer, if
deemed necessary.
4. Taxpayers will have 30 days to protest the value indicated on
the Special Notice of Value. The county must consider all
information supplied by the taxpayer pursuant to the protest.
If a taxpayer files a protest, the county must issue a Special
Notice of Determination. Language regarding further taxpayer
appeal rights of filing an abatement petition must be included
in the Special Notice of Determination.
General Audit Procedures:
Counties are permitted to establish reasonable "audit" procedures that
they feel would fairly and accurately determine the actual value of the
oil and gas leaseholds and lands. However, the following must be
included in the county's audit program:
1 . When a taxpayer is selected for audit, all of the taxpayer's
wells within the same field or unitized operation must be
included unless the scope of the audit is limited by agreement
with both parties.
2. The county assessor must provide the taxpayer with a letter, by
certified mail , indicating that an "audit" of that taxpayer' s
oil and gas declaration will commence no sooner than 15 days
after receipt of the letter. Included in the audit notification
letter must be:
a. A listing of the assessment years under audit.
b. A listing of the wells under audit.
c. A listing of all pertinent records, including but not
limited to, accounting, production sales, and tax records
being requested by the auditor.
15-DPT-AS
PUB ARL VOL 3 1-89
Revised 1-92
section VI, page 6.19
3. Upon completion of the "audit" the county must:
a. Mail notice of preliminary "audit" findings to the
operator at the address recorded on the annual
declaration.
b. Provide that the taxpayer has 30 days from the date of
notice to provide such other information not considered
by county auditors. The county may grant extensions of
time upon request.
c. Consider all information provided by the taxpayer to the
assessor or the designated auditor.
d. Provide a listing of the taxpayer's rights involving the
"audit" . Please refer to the Taxpayer Audit Rights:
section of these guidelines for further information.
4, If a change in valuation is determined, the county should use
the Division approved Special Notice of Valuation, Special
Notice of Protest, and Special Notice of Determination forms
listed as Addenda 5C.1, 5F.1, and 5H.1., respectively, in
the ARL Volume 2 - Administrative and Assessment Procedures
Manual . If the county wishes to develop their own form(s) , each
form must be approved by the Division of Property Taxation
prior to use.
5. If the taxpayer does not provide the requested information or
refuses to make the information available, the assessor may:
a. File in District Court under 39-5-119, C.R.S. ; or
b. Issue a best information available assessment.
15-DPT-AS
PUB ARL VOL 3 1-89
Revised 1-92
Section VI, page 6.20
Taxpayer Audit Rights:
The following rights must be provided all taxpayers that are subject to
a county oil and gas "audit" :
1 . Taxpayers will have 30 days to protest the value indicated on
the Special Notice of Value. The county must consider all
information supplied by the taxpayer pursuant to the protest.
If a taxpayer files a protest, the county must issue a Special
Notice of Determination including a written explanation
regarding the basis for the omitted property valuation.
Language regarding further taxpayer appeal rights of filing an
abatement petition must be included in the Special Notice of
Determination.
Other Review and Audit Procedures and Requirements:
Omitted Property Tax Collection Procedures:
After the Special Notice of Valuation has been mailed and the 30 day
taxpayer protest period has expired, the county may proceed to issue a
tax bill to cover the omitted taxes. After the tax bill has been mailed,
the taxpayer has 30 days to submit payment to the county.
Once the 30 day taxpayer payment period has expired, interest and
penalties will be applied beginning on the 31st day and in the amounts
set forth by Colorado statute. Please refer to Colorado Revised
Statutes Title 39, Article 10 for specific statutes on tax collection.
Audit Closure Notification:
Upon payment of the omitted property tax amount by the taxpayer, the
county commissioners will issue a letter of audit closure to the
taxpayer indicating that a final resolution has been reached on the
audited property in question for the assessment year(s) covered by the
county's audit.
Confidentiality Requirements:
All information provided to the assessor, treasurer, or their agents
will be considered private documents and are confidential under the
provisions of 39-5-120, C.R.S. This information includes declaration
schedules, accompanying exhibits , and any information or documents
supplied as part of the review or audit process .
15-DPT-AS
PUB ARL VOL 3 1-89
Revised 1-92
c.(
Section VI, page 6.21
Contractual Arrangements:
Counties must include language in any audit contracts or legal
agreements that agents authorized by the county to perform audits or
reviews are bound by the provisions of 39-5-120, C.R.S. Further,
unauthorized release of any confidential information or documents will
be subject to prosecution under the provisions of 39-1-116, C.R.S.
Under 39-10-107, C.R.S. , contingency fee reviews or audits are not
permitted. Contingency fees are defined as fees paid to the agent that
are based on the amount of omitted value discovered or taxes collected.
Counties are not permitted to contract with any agent wherein the audit
fees paid to the agent are related, in any way, to the values reported
or omitted property taxes collected.
Overpayment of Taxes:
If overpayment of taxes is discovered through the review or audit
process, the county must issue an abatement, in accordance with
statutory abatement procedures, for the taxes that were overpaid.
Abatements may be given for previous two (2) assessment years.
If both underpayments and overpayments are discovered for different
wells for the same taxpayer, the county may "offset" (determine the net
tax liability of or credit due) based on underpayments and overpayments.
This offset is allowed only within the specific assessment year under
review or audit and must not be applied to other assessment years under
review or audit.
This procedure is permitted in order to reduce the amount of paperwork
that would exist if the underpayment and overpayment were processed
separately.
Division Review of Audit Procedures:
Counties should follow the above procedures when reviewing or auditing
taxpayer oil and gas declarations . If the county wishes to depart from
one or more of the review or audit procedures, the county should submit
their changes to the Division for review prior to implementation.
•
•
15-DPT-AS
PUB ARL VOL 3 1-89
Revised 1-92
Section VI, page 6.22
Summary
The steps in the oil and gas review process are as follows :
Step #1 Review OGCC and Petroleum information to determine if any
discrepancies exist between these reports and taxpayer
declaration of volumes of oil and gas sold during the
previous calendar year.
Step #2 Notify taxpayer of discrepancies by certified mail .
If requested by the taxpayer, schedule a meeting to
discuss audit discrepancies and receive additional
information.
Step #3 Issue a Special Notice of Value (NOV) . Taxpayer has 30
days to protest. If abatement or refund is warranted,
assessor provides abatement information to taxpayer.
Step #4 After 30 day taxpayer protest period, treasurer issues
tax bill to cover omitted taxes. Taxpayer has 30 days to
pay tax bill . Interest and penalties accrue after 30 day
payment period.
The steps in oil and gas audit process are as follows:
Step #1 Mail certified letter of audit notification and request
for certain records. Provide the taxpayer a list of audit
rights and response period.
Step #2 Mail notification of preliminary findings.
Step #3 If requested by taxpayer, schedule a meeting with the
taxpayer to discuss audit discrepancies and receive
additional information.
Step #4 Issue a Special Notice of Value (NOV) . Taxpayer
has 30 days to protest Special NOV. If abatement or
refund is warranted, assessor provides abatement
information to taxpayer.
Step #5 After 30 day taxpayer protest period, treasurer issues
tax bill to cover omitted taxes. Taxpayer 'has 30 days to
pay tax bill . Interest and penalties accrue after 30 days
payment period.
15-OPT-AS
PUB ARL VOL 3 1-89
Revised 1-92
,a0
Section VI, page 6.23
For each specific assessment year under review or audit, offsets of
underpayments to overpayments may be granted to reduce paperwork
necessary in filing separate Notices of Value and abatements .
Taxpayer Filing Requirements
Pursuant to 39-7-101, C.R.S. , every operator or owner is required to
file a statement with the county assessor by April 15th of each year. An
oil and gas declaration schedule #658 must be sent to every known
operator/owner in the county as soon after January 1st as possible. (A
sample DS#658 can be found as Addendum VI-G. ) The statement applies to
any oil and gas leaseholds or lands which are producing or are capable
of producing on the assessment date. The statement must include the
following items:
1. Location and name of the well .
2. Name, address and fractional interest of the operator and
owners.
3. The quantity of oil (bbl ) and gas (mcf) sold or transported
from the premises for the preceding calendar year.
4. The amount of royalties paid in cash or product to the United
States government, state of Colorado, or any lesser
governmental entity.
5. The selling price at the wellhead of all oil and gas sold or
transported from the premises for the preceding calendar year.
If the property is located in more than one county or more than one
political subdivision, the person making the statement must allocate the
production value in proportion to the surface acreage in each
jurisdiction. A separate statement must be filed with the assessor of
each county.
Should the owner/operator fail or refuse to file a statement, the
assessor, pursuant to 39-7-104, C.R.S. , may value the property on the
basis of the best information available to and obtainable by him. In
addition, the assessors, pursuant to 39-7-105, C.R.S. , have the
authority and right to examine the books, accounts and records of anyone
owning or operating oil and gas leaseholds and lands in order to verify
the statement filed. If the statement is found to be willfully false and
misleading, the assessor may utilize the best information available to
make the assessment.
15-DPT-AS
PUB ARL V0L 3 1-89
Revised 1-92
S C H E DUL E S
Statutes
•� 'Aw
39-5-119 TA:
otxm' oti nnii b•, nin, or _ , the
nscretion Kit '.nu -i,strtct C - - - `y a .- ...
t;iday-a a hr as,c„�:ic or - .- - int.
.r to answer such inestioni ❑ l - • ;._ch c '
,hall be requL ed bi :he: coin it .. ' nter
u> -
i answer such lucIn: court against =t cn pers.. -- . _
h refor as in ()Inc !yil ca
Repealed ,d Las B.13 ... ...-.
Prior Compel Un a: o. 1963,
'Taxation c3
wLsT:.nw Topic Ni'. 171
CJ.8 Taxation § 401-
§ 39-5-120. Tax schedules endear: and =ii_c1 ac:tii misty for „
Lion
All personal property schedules eddhlts Thr :t temui t
returned to or secured by the ass,ssc'•r , ,.ill be endorsed set li tilt name the -
person whose taxable personal props, listed t _rcia and shall b '_ . x
either alphabetical or numerical order a'ici retained for .- period of s :u,
after which time they may be destroyed. Such schedules and accompanying ,Mali state, H
exhibits or statements shall he considered private documents and shall be adjustment
available on a confidential basis only to the assessor and the employees of his Included in
office, the treasurer and the employees of his office, the annual study assessment •
contractor hired pursuant to section 39-1-104(16) and his employees, the .esessurl<:iP
executive director of the department of revenue and the employees of his ro p,esercc
office, the administrator and the employees of his office, and the person -iy r.:ail ur it
whose taxable personal property is listed therein. Such exhibits or statements mail, sues: at
shall be available on a confidential basis to the hoard and the county board of is made in o:
equalization when information contained in such documents is pertinent to after such c.
an appeal or protest. valuation is I
(Repealed and reenacted Laws 1964, H.B.1005, § 1. Laws 1970, 8.13.21, § 1; Taws live rir Imes
1975, S.B.453, § 88; Laws 1976, H.B.1025, § 22; Laws 1987, H.B.1013, § 2.) together
Prior Compilations: C.R.S.1963, § 137-5-20 explain
eonlpie,ed
Historical and Statutory Notes fItteeter It
The 1987 amendment inserted "the annual "and the person -,chose usable pea-on t neon- _ . .... Cu:
study contractor, hired pursuant to section ens is listed therein."
39-1-104(16), and his employees" and rose i d (1.6' -c-.
Cross References ditlerent th
State auditor, exceptions to access to records, see § 2-3-107. _eltine fon l'.
SKate tb- act
Library References t'_
Taxation x328.
WESTI.A 'Tonic No. 371. ;:eesonal
CJ.S. Taxation § 396. assessment •
150
. fi�
,w r ry, .. s,.s s ..gPt
t < rs €•• f d
3 v & v K cOgv,iai.� ,'xh. ,,,,;,.,3.•t ' x aq tl
v'AAX_1
1 stad u'1 cry r - ! ._., -or Lion of improvements. Banker.
ears ..ndr- International Trust Co., 1941, 11.
no! eertii _ cords die , I �-and Colo. 15.
cejew_. ,uc : >n de r,ctrl
,:it or .: i. 88,, :-,meet 31.lue on it until 4. Burden of proof
-ber, ' ' tur i i_. et :hoc-
Where absc t.,,��. HieWhere manager of revenue ele
1933 uin acd. claim for personal property tax ii.
..re v. ,_pi in which probate of estate was .
X10. ager assumed burden of sust II '.
or al drrnati, Brodhead v. Robinson, 1953, 254 -
l'ax sche awes Colo. 16.
1 Lion .-r SI ro I 1 .Ch :!cg-
Statutory presumption that re nrz
cted . :none:. `nn c c -.Ne I .rice of treasurer are prima facie evidur
for moi! c t ,es, f 1 ax, of rclt Ti
c. �i c allegedi:: -ns uceu by u t comoam s mis- prooft of tax assessment does not shtfi
rt e,entatio i' of actual %aloe of mot, ace se- to taxpayer. Brodhead v. Kn, ,.
,:: i'3, )3tovc:- acing :,crca >of mots fain:ible 1953, 254 P.2d 857, 127 Colo. 16.
litigated lands, statute providing that assess- In proceeding to force payment o; x
meat rolls shall he prima facit evidence of all jewelry for years 1933 to 1936 during wits-
hmgs appearing there n was not applicable to jewelry had been omitted from assts n rr3
-coact admissib vle copies of tax schedules, not rolls, burden was on claimant of je
he books o the signed by defendant trust company, for pur- show that taxes for years during whit 1 cite':.
treasurer o 'i r t pose of showing number of acres classified as was omitted from assessment roll was pit p_r1,
be prima lade - irrigated lands dry farm lands, and grazing omitted. McGuire v. Schwartz, 1937 3 P.2_c
lands as well as values of each class and valua- 389, 101 Cob. 310.
es.
l § 39-1-116. Penalty for divulging confidential information
Except when pursuant to an order of any court of competent jurisdiction
4 or as otherwise provided by law, any person who divulges or makes known it
any way the contents of any private document, as specified in section
?(8--_103 o:- in section 30-5-120, to any person not authorized to have access
to such documents is guilty of a misdemeanor and, upon conviction thereof
shall be punished by a fine of not less than one hundred dollars nor more
Iran five hundred dollars, or by imprisonment in the county jail for not nor,_
lean three months, or by both such fine and imprisonment.
p Ii2epealed and reenacted Laws 1964, li.B.1005, § 1.)
k Prior Compilations: C.R.S.1963, § 137-1-t6.
i Cross References
P_onnal property schedules, confidentiality, see § 39-5-120.
)n, 1953, 254 P 2d :',.:oiic utilities, schedules of property as confidential, see § 39-4-103.
Srate auditor, exceptions to access to records, see § 2-3-107.
1 property is not
ty for other Man Library References
st Co. v. lntcrna- Taxation x%571.
.2d 656, 108 Colo. tCLSTLAW topic No. 371.
•
C.J.S. Taxation § 684.
ment of taxes on
16, inclusive, after United States Code Annotated
f6, that taxes for
I, assessment rolls Disclosure of information by officers and employees of federal government,civil damages, see 26
which were intro- U.S.C.A. § 7431.
elusive as to mat-
ire v. Schwartz,
310. i § 39-1-117. Prior actions not affected
record nothing in articles 1 to 13 of this title shall apply to or in any manner affect
menu of taxes on .: ;. . any valuation, assessment, allocation, levy, tax certificate, tax warrant, tax
736 brought after sale, tax deed, right, claim, demand, lien, indictment, information, warrant,
53
t,
a
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