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Home My WebLink About940622.tiff RESOLUTION RE: WAIVER OF PORTION OF INTEREST CALCULATED FOR PAYMENT OF BACK TAXES - FRANCIS ENERGY 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, pursuant to the provisions of § 39-10-101(2) (a) , C.R. S. , the Weld County Treasurer, upon discovering that any taxable property located in Weld County has been omitted from the tax list and warrant for the current year or for any prior year and has not been valued for assessment, is required to list and value the property for assessment as it should have been done in the previous year(s) , and WHEREAS, pursuant to the provisions of §§ 39-10-101(2) (b) and 39-10-104. 5, C.R.S. , the Treasurer is authorized to charge interest on any delinquent property taxes assessed, pursuant to § 39-10-101(2) (a) , C.R.S. , from the date they become due, and WHEREAS, Mr. Randy Fetterolf of CRS Services, Inc. , has been calculating property tax assessments on oil and gas leaseholds taxes which should have been due and payable but which were not properly assessed previously, and WHEREAS, Mr. Fetterolf has calculated certain tax assessments for four wells now owned by Francis Energy, Inc. (parcel numbers 080526000003, 080526000018, 080311000028, and 080118000037) , which should have been paid for the years 1991 and 1992, and which amounts total $8,297.58, and WHEREAS, the total amount of interest due and payable by Francis Energy, Inc. , for said past due property tax assessments through March 31, 1994, was $1,864.56, and WHEREAS, Francis Energy, Inc. , has paid the entire principle amount of $8,297.58, and WHEREAS, Francis Energy, Inc. , has agreed to pay the sum of $954.22, which represents the interest for the year 1992 only, as settlement for the total. interest being charged by the Weld County Treasurer for said delinquent taxes, and WHEREAS, the Board of County Commissioners believes the offer of settlement by Francis Energy, Inc. , is appropriate and fair, based upon information regarding the circumstances of the delinquent tax payments as submitted by staff. e,4.H 940622 Of r Z_L .O-23 �. � if. ;' AC(VPi. d.'.. RE: WAIVE PORTION INTEREST OF BACK TAXES - FRANCIS ENERGY PAGE 2 NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that interest in the amount of $954.22 for the year 1992 on wells owned by Francis Energy, Inc. , for the parcel numbers detailed above, is hereby accepted as payment in full of all interest due on the delinquent taxes for said wells for the tax years 1991 and 1992, and all interest for the delinquent taxes in excess of said amount is hereby waived. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 29th day of June, A.D. , 1994. 1/ � BOARD OF COUNTY COMMISSIONERS ATTEST: ��Y'2'UGG4L WELD COUNTY, COLORADO Weld County Clerk to the Board //')9ypy% /, Webster, ai arf BY: /1j h�r h / / ICI f1 OtJL' f Deputy Qierk to the Board wale . Hall, ro emAPPROVED AS TO FORM: air yam/ eo ge . Baxter ounty At orne - Constance L. Harbert a J A �fi /sii�r4� Barbara J. Kirk eyer 940622 MEMORAnDU IIIlkTo Board of County Commissionfs June 29 , 1994 COLORADO From _ _, Bruce T. Barker, Weld County Attorney Waiver of portion of Delinquent Interest tor Francis Energy subject Mr. Randy Fetterolf of CRS Services, Inc. , has been auditing oil and gas tax payments for various oil companies operating in Weld County. Mr. Fetterolf found that Francis Energy under-paid the taxes on four wells for 1991 and 1992 taxes in the total sum of $8, 297 . 58 . Section 39-10-101 (2) (b) requires any operator who has failed to pay the proper taxes on an oil and gas well to pay delinquent interest on the principal tax amount from the date when the original sum was due. In this case, the total amount of interest through March 31, 1994 , was $1, 864 . 56 . Mr. Fetterolf contacted Francis Energy about the underpayment in December, 1993 . Randy told Francis Energy that it was only obligated to pay the tax amount due of $8,297 . 58 and that the County would accept this amount without charging any interest. By letter dated February 11, 1994, Mr. Fetterolf submitted the tax input sheet on the four wells to the Weld County Assessor' s Office. Sue Young of the Weld County Treasurer' s Office then sent a letter to Francis Energy, dated March 9 , 1994, in which she stated that the total amount of interest due through March 31, 1994 , was $1, 864 . 56 . Francis Energy then contacted Mr. Fetterolf and asked him why the company was being charged interest on the delinquent amounts when his original representation was that no interest would be charged. Mr. Fetterolf responded by a letter dated March 24 , 1994 , in which he explained that he was unaware of the change in statute and related change in policy at the Weld County Treasurer' s Office concerning the assessment of late payment interest. Copies of the letters referred to above are attached. Mr. Nick Francis has spoken to me about how he believes it is unfair at this point in time to require his company to pay interest on the delinquent taxes for the four wells . He argues that the company relied upon Mr. Fetterolf ' s representation and promptly paid the taxes due once he became aware of the underpayment. Indeed, Mr. Francis has tendered checks for payment of the delinquent taxes on the four wells . As settlement of the dispute, Mr. Francis offers to pay the interest for 1992 only. That sum amounts to $954 . 22 . I have spoken to Mike Loustalet, Gary Parker, and Mr. Fetterolf about this matter. These gentlemen agree in their recommendation to the Board of County Commissioners that the Board should accept this offer of settlement in the sum of $954 .22 . They point to the 940622 Board of County Commissioners June 29 , 1994 Page 2 . fact that Mr. Fetterolf did make a misstatement regarding the interest due and Francis Energy relied upon that misstatement. They also cite the fact that Francis Energy has already paid in the total amount of the underpayment. They also point to the fact that there is some credence to the story by Mr. Francis that his company was honestly unaware of the underpayment until they were so informed in December 1993 . They agree with Mr. Francis in his statement that there was probably no way of Francis Energy knowing that an under payment was made for the 1991 taxes, given that the company took over the operation of the wells mid way through the 1991 tax year. ',L,--) L l� Br T. Barker W ld County Attorney BTB/db Attachments pc : Mike Loustalet Gary Parker 940622 CRS-Services, Inc. Mineral Economics February 11 , 1994 Vera Hoff Weld County Assessor' s Office 1400 N . 17th Avenue Greeley, CO 80631 Dear Vera: Please find enclosed an N.O.V. input schedule for Francis Energy , Inc . for 1991 and 1992 tax-years . This operator has agreed with the adjustments to taxable value ; please send the NOV' s to the attention of Cheryl . Please call me at (307 ) 777-5261 if you have questions , or to discuss . As always , many thanks for your continued assistance . Sincerely, G Randy Fetterolf P.O. Box 280203 Lakewood, CO 80228 (303) 989-6978 Fax(303) 989-7428 • Cheyenne, Wyoming • Casper, Wyoming 94:06ti2 N.O.V. -- VERA INPUT VELD COUNTY AD VALOREM TAX REVIEW FRANCIS ENERGY, INC. -- OPERATOR COUNTY ASSESSOR N.O.V. INPUT WORKSHEET TOTAL ADDITIONAL ADDT'L ADDT'L TOTAL TAXABLE GROSS GROSS ADDT'L ADDT'L VALUE TAX PIN PARCEL VALUE VALUE GROSS EXEMPT 0 87.5% YEAR NUMBER NUMBER WELL NAME OIL GAS VALUE ROYALTY (ROUNDED) 1991 t0}44.2 080311000028-04"-a VANNOY 16-I 59,717 11,122 70,839 0 61,980 S kyq`1 19914046M 080118000037-Ot- FOOSE f 2 36,510 --- 36,510 0 31,950 TOTAL 1991: $96,227 $11,122 $107,349 $0 $93,930 1992j)10181_080526000018-01 PAYNE 2-26 3,379 --- 3,379 0 2,960 1992 0074192 080526000003-01 EDITH 1-26 --- 5,473 5,473 0 4,790 TOTAL 1992: $3,379 $5,473 $8,852 $0 $7,750 • 909622 res 111— OFFICE OF WELD COUNTY ASSESSOR PHONE(303) 3533845. EXT. 3858 WELD COUNTY M AD IkISTRATIVEOFFICES ' 1400 N.17TH AVENUE GREELEY, COLORADO 80831 • COLORADO March 24 , 1994 FAX TRANSMITTAL Mr . Adam Buna Francis Energy, Inc . 1220 11th Avenue -- # 203 Greeley, CO 80631 Dear Mr . Buna; I have spoken with Mike Loustalet concerning the bill for late-payment interest you received . When I last discussed the delinquent ad valorem taxes in this case with Cheryl of your staff , I was unaware of a change in statute and related change in policy at the Treasurer ' s office concerning the assessment of late-payment interest . I apologize for any confusion . Mike has told me that the law does not provide for any discretion on his part to mitigate , reduce , or forgive the interest , and , therefore , the bill must stand. Your only recourse is to ask the County Board of Equalization (County Commissioners ) to consider the matter . Again . I apologize for any misunderstanding resulting from my discussions with Cheryl . Please call me at ( 307 ) 777-5261 if you have questions , or to discuss further . Thank you. Sincerely, Randy Fetterolf ~� 9C0622 • Arii 1 OFFICE OF THE COUNTY TREASURER FRANCIS M. LOUSTALET COUNTY TREASURER PHONE (303)353-3845, EXT. 3250 "Ripe POST OFFICE BOX 458 GREELEY, COLORADO 80632-0458 456 COLORADO March 9 , 1994 Francis Energy Attn: Cheryl 1220 11 Ave Suite 203 Greeley, CO 80631 RE: Audit of Oil & Gas Accounts - Corrected Tax Notices Weld County, Colorado Due to an audit of oil accounts for the COUNTY OF WELD, STATE OF COLORADO, please find enclosed corrected tax notices . There is a balance of taxes due as follows: Additional Tax Amount Due: $ 8297 .58 (For 1991 to 1992 taxes) Interest to 3-31-94 1864. 56 TOTAL DUE 10162 .14 To avoid additional interest these taxes should be paid by April 1 , 1994. If you have any questions concerning this matter please call me at 303-353-3845, Ext. 3257 . Sincerely, / Sue Young Weld County Treasurer' s Office Enclosures 94:0622 Hello