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HomeMy WebLinkAbout930684.tiff RESOLUTION RE: THE BOARD OF EQUALIZATION, 1993, WELD COUNTY, COLORADO PETITION OF: EXETER DRILLING NORTHERN INC P 0 BOX 868 HOUSTON, TX 77001 DESCRIPTION OF PROPERTY: PIN: P 0019306 PARCEL: 105704000001 - DRLG RIG #1 4 4 66 WHEREAS, the Board of County Commissioners of Weld County, Colorado, organized as the Board of Equalization for the purpose of adjusting, equalizing, raising or lowering the assessment and valuation of real and personal property within Weld County, fixed and made by the County Assessor for the year 1993, and WHEREAS, said petition has been heard before the County Assessor and due Notice of Determination thereon has been given to the taxpayer(s) , and WHEREAS, the taxpayer(s) presented a petition of appeal of the County Assessor's valuation for the year 1993, claiming that the property described in such petition was assessed too high, as more specifically stated in said petition, and WHEREAS, said petitioner being represented by Robert Holland, who submitted a letter regarding said petition, and WHEREAS, the Board has made its findings on the evidence, testimony and remonstrances and is now fully informed. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, acting as the Board of Equalization, that the evidence presented at the hearing clearly supported the value placed upon the Petitioner's property by the Weld County Assessor. Such evidence indicated the value was reasonable, equitable, and derived according to the methodologies, percentages, figures and formulas dictated to the Weld County Assessor by law. The assessment and valuation of the Weld County Assessor shall be, and hereby is, affirmed as follows: 930684 Page 2 RE: BOE - EXETER DRILLING NORTHERN INC ORIGINAL Land $ Improvements OR Personal Property 5, 730 TOTAL ACTUAL VALUE $ 5, 730 BE IT FURTHER RESOLVED that a denial of a petition, in whole or in part, by the Board of Equalization may be appealed by selecting one of the following three options: 1. Board of Assessment Appeals: You have the right to appeal the County Board of Equalization's (CBOE's) decision to the Board of Assessment Appeals (BAA) . Such hearing is the final hearing at which testimony, exhibits, or any other evidence may be introduced. If the decision of the BAA is further appealed to the Court of Appeals, only the record created at the BAA hearing shall be the basis for the Court's decision. No new evidence can be introduced at the Court of Appeals. (Section 39-8-108(10) , CRS) Appeals to the BAA must be made on forms furnished by the BAA, and should be mailed or delivered within thirty (30) days of denial by the CBOE to: Board of Assessment Appeals 1313 Sherman Street, Room 523 Denver, CO 80203 Phone: 866-5880 OR 2. District Court: You have the right to appeal the CBOE's decision to the District Court of the county wherein your property is located. New testimony, exhibits or any other evidence may be introduced at the District Court hearing. For filing requirements, please contact your attorney or the Clerk of the District Court. Further appeal of the District Court's decision is made to the Court of Appeals for a review of the record. (Section 39-8-108(1) , CRS) 930684 Page 3 RE: BOE - EXETER DRILLING NORTHERN INC OR 3. Binding Arbitration: You have the right to submit your case to arbitration. If you choose this option the arbitrator's decision is final and your right to appeal your current valuation ends. (Section 39-8-108.5, CRS) Selecting the Arbitrator: In order to pursue arbitration, you must notify the CBOE of your intent. You and the CBOE select an arbitrator from the official list of qualified people. If you cannot agree on an arbitrator, the District Court of the county in which the property is located will make the selection. Arbitration Hearing Procedure: Arbitration hearings are held within sixty days from the date the arbitrator is selected. Both you and the CBOE are entitled to participate. The hearings are informal. The arbitrator has the authority to issue subpoenas for witnesses, books, records, documents and other evidence. He also has the power to administer oaths, and all questions of law and fact shall be determined by him. The arbitration hearing may be confidential and closed to the public, upon mutual agreement. The arbitrator's written decision must be delivered to both parties personally or by registered mail within ten (10) days of the hearing. Such decision is final and not subject to review. Fees and Expenses: The arbitrator's fees and expenses are agreed upon by you and the CBOE. In the case of residential real property, such fees and expenses cannot exceed $150.00 per case. The arbitrator's fees and expenses, not including counsel fees, are to be paid as provided in the decision. 930684 Page 4 RE: BOE - EXETER DRILLING NORTHERN INC The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 29th day of July, A.D. , 1993. / BOARD OF COUNTY COMMISSIONERS ATTEST: // // WELD COUNTY, COLORADO / °mil /J v v" H" r / Weld County Clerk to the Board %`tGJ2Z •ic 2 /ji1,(/,LLzt Constance L. Harbe t, Chairman BY: dhted4A EXCUSED Deputy Clerk o the Board W. H. ebster,� PI em -�APPROVED AS TO FORM: 5 eorgeBaxte ---- Countyunty Att ----I:7 Yney - -"-- Dale K. Hall • /I , 4- arbara J. Kirkmey r 930684 BF9 3 - 3- BOE DECISION SHEET PIN ll: P 0019306 PARCEL I1: 105704000001 EXETER DRILLING NORTHERN INC P 0 BOX 868 HOUSTON, TX 77001 HEARING DATE: July 29, 1993 TIME: 2:00 P.M. HEARING ATTENDED? (Y,�`vJ) NAME: AGENT NAME: NN�� / APPRAISER NAME: t2�� ct -1/0 -1--Q DECISION: DECREASE IN VALUATION INCREASE IN VALUATION NO CHANGE IN VALUATION ASSESSMENT RATIO ACTUAL VALUATION ORIGINAL ADJIMZED Land $ $ Improvements OR Personal Property 5, 730 s, x7 r0 Total Actual Value $ 5, 730 $ 91t' COMMENTS: MOTION BY _, 7?)(/ TO 29e y�y�, /‘ u) Jam.® /ro SECONDED BY lf,� Baxter -- (aJN) Hall -- ON) Failed to meet burden of proof Harbert -- (MN) _Comparables inadequate Kirkmeyer -- ft{N) t- Other: Webster -- ( ) Se;1--l- RESOLUTION NO. - °L. U'- ASSESSOR 1400 NORTH 17th AVE. GREELEY, COLORADO 80631 NOTICE OF DENIAL PHONE (303) 353-3845, EXT. 3656 DRLG RIG 81 „ �. 4 6 66 COLORADO • i OWNER EXETER DRILLING NORTHERN INC EXETER DRILLING NORTHERN INC PARCEL 105704000001 PIN P 0019306 P 0 BOX 868 YEAR 1993 HOUSTON TX 77001 LOG 00015 06/28/1993 The appraised value of property is based on the appropriate consideration of the approaches to value required by law.The Assessor has determined that your property should be included in the following category(ies): RESIDENTIAL PROPERTY IS VALUED BY CONSIDERING THE MARKET APPROACH. AGRICULTURAL LAND VALUE IS DETERMINED SOLELY BY THE EARNING OR PRODUCTIVE CAPACITY OF THE LAND, CAPITALIZED AT A RATE SET BY LAW. ALL OTHER PROPERTY, INCLUDING VACANT LAND, IS VALUED BY CONSIDERING THE COST, MARKET, AND INCOME APPROACHES. If your concern is the amount of your property tax, local taxing authorities (county, city, fire protection, and other special districts) hold budget hearings in the fall. Please refer to your tax bill or ask your Assessor for a listing of these districts,and plan to attend these budget hearings. The Assessor has carefully studied all available information, giving particular attention to the specifics included on your protest and has deter- mined the valuation(s) assigned to your property. The reasons for this determination of value are: YOUR PERSONAL PROPERTY HAS BEEN VALUED IN ACCORDANCE WITH COLORADO LAW AND INSTRUCTIONS PUBLISHED BY THE STATE DIVISION OF PROPERTY TAXATION. OTHER PERSONAL PROPERTY, SIMILAR IN NATURE, HAS BEEN CONSISTENTLY VALUED USING THE SAME STATUTORY METHODS. PETITIONER'S ASSESSOR'S VALUATION PROPERTY CLASSIFICATION ESTIMATE ACTUAL VALUE ACTUAL VALUE OF VALUE PRIOR TO REVIEW AFTER REVIEW PERSONAL PROPERTY 5,730 5,730 TOTALS $ $ 5, 730/ , 730 $ 5730 If you disagree with the Assessor's decision,you have the right to appeal to the County Board of Equalization for further consideration, 39-8-106(1)(a),C.R.S. Please see the back of this form for detailed information on filing your appeal. By: WARREN L. LASELL 06/29/93 WELD COUNTY ASSESSOR DATE 4 Fp 5-oP ADDITIONAL INFORMATION ON REVERSE SIDE 9�06S4 Form T AR' 4 87/93 cciu HAVE, THE Ric H . O AP P A SSSSCf Ur • v rj , , .r ..` Lo hall zattion will sit to hear appeals beginning July 1 and apQ:cpcnneitneic lurecon August 1 i't t}r _ ocomir, and buildings) and personal property (tu.nichinps t arhfri Apia d eunicmenp 3994e104 and 39'8 . .`8233 C.R.S. APPEAL PROCEDURES: it you choose oose , appeal the Assessor's decision, mail or deliver one copy of this completed form to the s , Board of Equalization. To preserve your right to appeal, your appeal must be POSTMARKED D OR DELIVERED Ri D ON OP BE``.''RE .1iJi_Y 15 FOR RE3$L PROPERTY, AND, 41,1LY 20 FOES PERSQNAL PROPERTY WELD COUNTY BOARD OF EOUAL Z A,TION . _ - ; 915 10th Street, P.O. Box 7yf3, ,, T , Greeley, Colorado 80632 2, Telephone;lf' t3+, P5641000,- r xt. 422C WOTSPICA'TrQk 31 H,EAFUNG: x You will be notified of the time and place set for the hearing of your appeal. COLPillve 00000IOF EQUALIZATION'S DE'tthiSNA ION The County Board of Equalization must make a decision on your appeal and mail you a determination within five business days. The County Board must conclude their hearings by August 1 C. TAXPAYER PiO3ETSFCDfd "tUF$TFIEf3Ii4PPEWaL.5P T , F Y � It you art.' r'ot s ' sfied with 'the bounty)my foam of gi.jaitzattj,oas rlpci;,ioq ytiu,mist file wiftvri]thir„+ d yjQf the . a:or,,,ty Btrardott `_qua zae on rwri ten decision vi;ith ONE of the fn?liowing. _ Board oti Assessment Appeals (,BAA),; ,,.... . ₹ the CAA at 9 313 Sherman, Room 315. Denver, Colorado 80203,0.3, (,003, P68-5880 880 District Court: 9th Avenue and 8th eel. '.0, Box C a1 eele , Colo ado 80632 Tee prone ,goal 356 `',306 PKt '020 v t e T.Atbift idd: - r, i ! _ . - r t 1 1NF`tI LOtUNT1'3RO';l'0't "FO'.JAL -O1ON . . , ,, tierr- 7, (enured() 80E32 a , i . (3n3„ etti0-ni,r Est- 225 ye ... '1t tecepiee ra determination from the County Euard of Equalization.you must tile ne appeal with the Hoard usisereseneist Anneals by September 2^. YOUR. APPEAL RIGHTS. >O U MUST ,ROVE YOU HAVE 'PLED A TIMELY APPEAL; ,t r,t'r4E- -aOR,C. WE RECOMMEND ALL DOARES U:'',rUL.tPL t'. ::•. : f*}77$t t.. c/ b'tr'= E't�+ ,le.�'2- OF M9:os.,oi its PPP PiliON TO tR toes 00 -.. t._ cipc „ 3, YOU ML._L ' .1;A t. You'D , -3„o b .. pE. A, s Rti intiliocup .a_ , mH AMOHM HnIndH. addiHonal document as nail:casco -. I "SEE ATTACHED LETTER OF PROTEST" • !.'2 ,�q,ff,✓/,��AA _ {( �/ {' / )/ter � Y 930684 1993 PERSONAL PROPERTY PROTEST ATTACHMENT TO SCHEDULE NO. 0019306 WELD COUNTY COLORADO Sec. 39-1-105. "All taxable property, real and personal , within the state at twelve noon on the first day of January, designated as the official assessment date, shall be listed, appraised and valued for assessment in the county wherein it is located on the assessment date. " Sec. 39-5-113.3. Oil and gas drilling rigs - Apportionment of Value - (1) "As soon after the assessment date as may be practical , the assessor shall determine those oil or gas drilling rigs that were operating, stored, or maintained in the county during the preceding calendar year (4) "This section shall apply to the apportionment of value of oil or gas drilling rigs and not to the provisions of section 39-5-113. " Sec. 39-1-105 establishes the assessment date, in this case January 1 , 1993. Sec. 39-5-113.3 provides for the apportionment of value, based on the location of a drilling rig during the preceding calendar year. Sec. 39-5-113 .3 does not provide the assessor the right to establish a "new assessment date" which he had done in this case. Exeter' s drilling rig number 1 was destroyed by fire November 14, 1992 while on location in Boulder County, Colorado. Since said drilling rig was not in existence on January 1 , 1993 , the "official assessment date" , Exeter respectfully request that the assessor' s 1993 actual valuation current year value of $19,759 be changed to $ -0-. 930684 • t1 CLERK TO THE BOARD P.O. BOX 758 ' GREELEY,COLORADO 80632 e (303)358.4000 EXT.4225 COLORADO July 16, 1993 Parcel No. : 105704000001 PIN No. : P 0019306 EXETER DRILLING NORTHERN INC P 0 BOX 868 HOUSTON, TX 77001 Dear Petitioner(s) : The Weld County Board of Equalization has set a date of Thursday, July 29, 1993, at or about the hour of 2:00 P.M. , to hold a hearing on your valuation for assessment. This hearing will be held at the Weld County Centennial Center, 915 10th Street, Greeley, Colorado, in the First Floor Hearing Room. You have a right to attend this hearing and present evidence in support of your petition. The Weld County Assessor will be present before the Board. The Board will make their decision on the basis of the record made at the aforementioned hearing, as well as your petition, so it would be in your interest to have a representative present. If you plan to be represented by an agent or an attorney at your hearing, prior to the hearing you shall provide, in writing to the Clerk to the Board's Office, an authorization for the agent or attorney to represent you. If you do not choose to attend this hearing, a decision will still be made by the Board by the close of business on August 10, 1992, and mailed to you on or before August 16, 1992. Because of the volume of cases before the Board of Equalization, all cases shall be limited to 15 minutes. Also due to volume, cases cannot be rescheduled. It is imperative that you provide evidence to support your position. This may include evidence that similar homes in your area are valued less than yours or you are being assessed on improvements you do not have. Please note: The fact that your valuation has increased cannot be your sole basis of appeal. Without documented evidence as indicated above, the Board will have no choice but to deny your appeal. 930684 EXETER DRILLING NORTHERN INC - P 0019306 Page 2 At least two (2) working days prior to your hearing the Assessor will have available, at your request, the data supporting his valuation of your property. Please advise me if you decide not to keep your appointment as scheduled. If you need any additional information, please call me at your convenience. Very truly yours, BOA D OF EQUALIZAT ON etat Donald D. Warden, Clerk to the Board // p BY: /' ic.,1-(62 Carol A. Harding, Deputy 1!` cc: Warren Lasell, Assessor 930654 OXY OCCIDENTAL PETROLEUM SERVICES, INC. `/ SUBSIDIARY OF OCCIDENTAL PETROLEUM CORPORATION :f July 13, 1993 RETURN RECEIPT REQUESTED CERTIFIED # P 139 727 404 Weld County Board of Equalization 915 10th Street, P.O. Box 758 Greeley, CO 80632 Protest: Drilling Rig #1 Schedule 0019306 Drilling Rig #22 Schedule 0012345 Gentlemen: Please find attached Exeter Drilling Company's protest of the assessor's 1993 actual valuation current year value applicable to the above listed schedules. Thank you for your time and consideration in these matters. Sincerely, ±- . ✓i&` ( L`/ ./A ti Robert I: olland Manager of Property Tax RLH/dmp Encl. BW-CO-21 #2 2000 Post Oak Boulevard P. 0. Box 868 Houston,Texas 77001-0868 (713)840-7100 tic' .' /Is", rig- 9:30694 eglik OCCIDENTAL PETROLEUM SERVICES, INC. OXY SUBSIDIARY OF OCCIDENTAL PETROLEUM CORPORATION July 21, 1993 RETURN RECEIPT REQUESTED CERTIFIED NO. P139 727 412 Carol A. Harding, Deputy Weld County Board of Equalization 915 10th Street, P. 0. Box 758 Greeley, Colorado 80632 RE: Protest of Parcel No: 105704000001 PIN No: P0019306 Hearing Date July 29, 1993 Dear Ms. Harding: -i - t✓� Please accept this letter as support documentation applicable to the protest listed above. Your notice dated July 16, 1993 is attached. On November 14, 1992, Exeter Drilling Company' s drilling rig Number 1 was destroyed by fire while on location in Boulder County, Colorado. Sec. 39-1-105. "All taxable property, real and personal, within the state at twelve noon on the first day of January, designated as the official assessment date, shall be listed, appraised and valued for assessment in the county wherein it is located on the assessment date. " Sec. 39-5-113.3. Oil and gas drilling rigs - Apportionment of Value - (1) "As soon after the assessment date as may be practical, the assessor shall determine those oil or gas drilling rigs that were operating, stored, or maintained in the county during the preceding calendar year (4) "This section shall apply to the apportionment of value of oil or gas drilling rigs . . . . " Sec. 39-1-105 establishes the assessment date, in this case January 1, 1993. Sec. 39-5-113.3 provides for the apportionment of value, based on the location of a drilling rig during the preceding calendar year. Sec. 39-5-113.3 does not allow the assessor to establish a "new assessment date" which he had done in this case. Since said drilling rig was not in existence on January 1, 1993, the "official assessment date" , Exeter respectfully request that the assessor's 1993 actual valuation current year value of $19,759 be changed to $ -0- . Thank you for your time and consideration in this matter. afeld o / Robert L. Holland Manager of Property Tax RLH/j lh Enclosure 2000 Post Oak Boulevard P. 0. Box 868 Houston,Texas 77001-0868 (713)840-7100..-. ,.na not- 4 cc Coto Colorado Department of Local Affairs aq'$ DIVISION OF PROPERTY TAXATION Mary Anne Maurer * Utj,* Property Tax A ��i [��^yp\]SSESSO� *1876 '� 1] P `lX 1'7q. Roy Romer Governor JUN 1 0 1993 CJ TO: All County Assessors��7 GREELEV,COL FROM: Mary Anne Maurer 4i L �,2�/ Property Tax Administrator SUBJECT: 1987 Oil and Gas Drilling Rig Apportionments DATE: February 5, 1987 DISTRIBUTION: File in Section V, AH565 Oil and Gas Replacement Cost Manual MEMORANDUM Effective January 1, 1987, all oil and gas rotary drilling rigs that are subject to local assessment must be apportioned between counties by using the previous year's location. This change in apportionment procedure also applies to auxiliary equipment located on licensed truck mounted drilling rigs. This change is required due to the provisions of H.B. 1178 which was passed in 1986. A copy of this act is attached for your review. The new procedure for apportioning rigs and auxiliary equipment is: 1. All county assessors, who determine that rigs were operating in their counties during the previous year, must mail a declaration schedule DS 658 to each rig owner or agent. If additional rig information is desired, it is suggested that a copy of the latest Drill Rig Questionnaire, as developed by the Division of Property Taxation, be mailed with the declaration schedule. 2. On the declaration schedule, the rig owner or agent must list all rigs that were located in the county during the previous year, and must attach a drilling log for each rig. The declaration schedule must be signed and filed with the assessor by April 15 of each year. 3. The rig owner or agent must mail , to the county of original assessment (COA) , a listing of the drilling rig property sufficient to determine a valuation for assessment. rrr +; WIs34 1313 Sherman Street 623 Centennial Building, Denver, Colorado 80203 (303) 866-2371 • 930684 �• n 4. The assessor of the COA must value the rig and apportion the value between the counties listed on the drilling log. 5. By May 24, the assessor of the COA must mail a notice of valuation and apportionment to the rig owner or agent and to all counties to which an apportionment was made. In addition, the assessor of the COA must mail a copy of the drilling log to each of the assessors involved. 6. Each assessor receiving an apportionment from a COA must use the valuations provided by the assessor of the COA. 7. All rig assessments must be reflected in the applicable counties' abstract submitted by August 10 of each year. An important point to remember is that, as of January 1, 1987, all valuations and apportionments must be based on prior year information only and rigs that move into the state during the current year are not valued until the following year. In addition, the 257. minimum valuation provided by 39-5-110 C.R.S. is still in effect. This act also provides that the Property Tax Administrator define the term "oil and gas drilling rig" which is to be applied by all Colorado assessors. The definition will be included in ARL Volume 5 - Personal Property Manual to be published this year. MAM:DW:go 87rigapp #(1)1 • 930684 OF o oru c,is D,par:n n Gr Locai Affairs ye .90 DIVISION OF PROPERTY TAXATION Mary Anne Maurer Property Tax Administrator /876 Roy Romer Governor TO: ALL COUNTY ASSESSORS FROM: Mary Anne Maurer, 1h _ Property Tax Administrat SUBJECT: Drilling Rigs and the 25% Assessment Minimum DATE: April 18, 1988 DISTRIBUTION: Circulate to Personal Property Staff Place in AH 565, Section V MEMORANDUM The Division has been contacted regarding whether the 25% minimum assessment, as stated in 39-5-110 C.R.S. , still applies to the valuation and apportionment of drilling rigs. After discussions with the Colorado Attorney General 's office, it has been determined that the 25% minimum assessment no longer applies to drilling rigs. Drilling rig proration and apportionment is specifically covered in 39- 5-113.3 C.R.S. The first sentence of this paragraph states: (2) The assessor, upon receiving such inventory and notification that his county was the first location of the rig in Colorado, shall determine its value and shall apportion such value between the counties in which the drilling rig was located during the preceding year and the districts thereof, in the proportion that the periods of time during which such equipment was located or maintained in such counties bear to the full calendar year. The Assistant Attorney General has advised us that, since this statute specifically covers the proration and apportionment of drilling rigs, it would supercede the general provisions covering taxable personal property moved out of state that are stated in 39-5-110 C.R.S. Among these general provisions are the 25% assessment minimum. All counties of original assessment (COA's) for drilling rigs must be sure to exclude drilling rigs from the 25% minimum assessment. All valuations and apportionments must be based on the actual number of days the rig is in Colorado. If you have any questions regarding this interpretation, please call Bill Hyde or Chris Woodruff of this office. 1313 Sherman Street, 623 Centennial Building, Denver, Colorado 80203 (303) 866-2371 �..V 930684 , -rw' •r IY�riS 3i P'�—• . s,'"..;*;- .1r ..-a 'a. .:01 t. ';'' ''1'41g .. is a 14 76 I 77 Valuation and Taxation 39-5-113.3 1 I able personal property ' 39-5-111. Livestock,agricultural products-not valued, when. (Repealed) the administrator and 1 r le shall be so designed Repealed, L. 83, p. 1485, § 11, effective April 22, 1983. i location and general- ` I t l into the various sub- p 39-5-113. Movable equipment - apportionment of value. (2) The assessor 4 ishing of such informa- ; of the county in which such equipment is located on the assessment date J ' Colorado income tax shall determine its value and shall apportion such value between the counties { ;` quired by the assessor affected and the school districts thereof, in the proportion that the periods schedule shall include of time during which such equipment may be located or maintained in such n 39-1-102 (7.2), of a counties bear to the full calendar year. He shall furnish a copy of such valua- W I. ;.h pursuant to section tion and apportionment to the owner of such equipment or to his agent and and the date on which shall also transmit a copy thereof to the assessor of each county affected as his authority to list the apportioned value of such equipment on the assess- , ; May 8; (1) amended, ment roll of his county. For purposes of making such apportionment, the valuation of the portable or movable equipment made by the assessor of the county of original assessment shall be used by all county assessors i, involved. I) (4) Repealed, L. 76, p. 765, § 33, effective January 1, 1977. r Source: (2)amended, L. 90, p. 1696, § 18, effective June 9. 33. Editor's note:The repeat date shown for subsection(4) in the 1982 Replacement Volume 16B was erroneously printed as"January 1977"instead of"January I, 1977". sment date - removal entory. (2) If any tax- isment date or brought 39-5-113.3. Oil and gas drilling rigs-apportionment of value.(1) As soon t date is removed from after the assessment date as may be practicable, the assessor shall determine :hen the owner thereof - those oil or gas drilling rigs that were operating, stored, or maintained in e state, shall apply to the county during the preceding calendar year and shall mail or deliver two + I' , listed and valued for copies of a declaration to the place of business or drilling operation or to :I pon proceed to revalue the residence of each person known or believed to own such rigs, or to the it'll year as the perio agent of such person. Such.person or his agent shall list in such declaration the state bears to dr j all oil or gas drilling rigs owned by him, or in his possession, or under his , control that were located in said county during the previous calendar year, In be less than twenty; 1 n be l shall su ' i attaching thereto the drilling logs of the respective rigs showing their various ui p locations and corresponding dates. In addition, such person or his agent shall and, if such original. , provide to the assessor of the first county in Colorado listed on each rig's ' he annual abstract ok log an inventory of that rig's equipment sufficient to determine a valuation in valuation shall be i for assessment. The original copy of the declaration shall be signed and ' iately notify the treas returned to the assessor no later than the April 15 next following. lE made. Failure of th (2) The assessor, upon receiving such inventory and notification that his • to make application' i county was the first location of the rig in Colorado, shall determine its value roperty from the stat- i and shall apportion such value between the counties in which the drilling aluation by the asses ; rig was located during the preceding year and the districts thereof, in the i j ection (2) shall apply proportion that the periods of time during which such equipment was located the same ownership' ' or maintained in such counties bear to the full calendar year. On or before li 1j;' June 15, the assessor shall furnish a copy of such valuation and apportion- IP 4�'1 1983. ment to the owner of such equipment or to his agent and shall also transmit ,i 1,r '? a copy thereof to the assessor of each county affected, together with a copy i , ., pril 22; (2) amender of the drilling log for that rig. For purposes of making such apportionment, ,i t,; the valuation of the oil or gas drilling rig made by the assessor of Me fi■r5■t &'' 93Ug. t' Iil r:. ;>-r,. .:s..,........'-. ]�-. Y* �._. �� .�... C '-' " Mhti,tL .y %1s `51 ... ..,. -p,nW. tr-.,...e"4- .,.Ayg)1"'f."•XJ\fiRKsA z i .��. - sir 39-5-113.5 Taxation - Colorado county on the log shall be used by y78 79 In the subsequent counties, the assessor shall accept the returned assessordeclaration with the rig's name and location data as a rpersonal 16. 3otton P erIf any , ror .. ( ) The n proper filing. (1)va lues P so apportioned shall be included in the affected counties' risdput\ abstracts of assessment filed pursuant to section 39-5-123. (4) This section shall apply to the apportionment or his depot} drilling rigs and not the provisions of section 39-5-113. of value of oil or and return tr, gas by such date 1, f b (5) For purposes of this section "oil and gas drilling rigs" shall be defined the amount r y the property tax administrator pursuant to section 39-Z- vided for in , definitions shall be uniform and consistent throughout the state.(1) (e), which amount of ta\ Source: Entire section added, L. 86, sonal propem (2) amended, L. 88, p. 1297, q P• 1107, § I, effective July 1, 1987. to be filed. . ' F I+ p. 1696, § 19, effective June 9. § effective April 29; (2) amended, L. 90 d or more of su { for filin for r c in writing and • " amount of ht V; 39-5-113.5. Works of art - apportionment of value. (1) Any owning any works extension shai of art which are apt to be displayed in any county persons f which a per or ,`k M; the state during any calendar year shall indicate in a statement accompanying , shall to l be subjeL their personal property schedule the kind and description of such works of requested. Fun art and the estimated period of time during the calendar year in which such ules by April 1 works of art are to be so displayed and shall provide to the assessor proof• extension. then of exemption pursuant to the provisions of sections 39-3-123 and 39-26-102taxable person: (2.5). Failure to file a statement results in forfeiture of a claim for exemption ' and obtainable in that calendar year. of V.' (2) The assessor of the county in which such works of art are displayed the assessor's c °tea' - shall determine its value in the proportion that the periods of time during torcoll valuati which such works of art may be displayed bear to the full calendar year. ': ! He shall furnish a copy { collection w; art or to his agent. of such valuation to the owner of such works of. cessive persona - (2) (a) If an Source: Entire section added, L. 84, 1 assessor or his a » amended, L. 89, p. 1484, p. 999, § 2, effective January I; (1)C:, a full and comr § 20, effective June 9. § 8, effective April 23; (2) amended, L. 90, Poses, the asses p. 1697,` a full and comr . i date of notificat 39-5-II5. Taxpayer to furnish information - affidavit on mineral leases: aloe of such pe (1) At any time prior or subsequent to April 15 of each year, the assesso asatiablgen old may request any person known or believed to own taxable property locate, or his a in his county to furnish such information or to make available.for examina-. a amount of up tc t tine such records as may be required by him to determine the actual valu , :' mined for the or of such property, tied to the trea (2) Within ten days after the execution of a mineral lease, a lessor sit- schedule l proper. y4 file with the assessor an affidavit stating the annual net rental payable unde of hts personal r such lease for the u g Wed schedule an purposes of determining the actual value of such mineral Pas. or misleadi interest where the income approach to appraisal is utilized by the assessor. ' Such affidavit shall constitute a private document and shall be available o.. owned by him. a confidential basis as provided in section 39-5-120. bl AnY Persc Source:Entire section amended, L. 85, p. 1213, § I I, effe final rolls u nv s not be assessed e -__. �' ' 4 meet under t . __ v�+vv i X .3O \131 -b5 quo e`l , ker1 o t\`\ 5 ,81O o 1. 1O% 13 O O l Ivy ‘Lk- , 930684 1 -" o 1� 3 So nom- 930684 ��;o? cozo,� Colorado Department of Local Affairs Ham'" tB 90 DIVISION OF PROPERTY TAXATION Mary E. Huddleston MY w Property Tax Administrator 1876 Roy Romer Governor TO: All County Assessors�1r\Ic ���Cy FROM: Mary Huddleston 1� IVA Property Tax Administ ator SUBJECT: 1993 Oil and Gas Drilling Rigs Valuation Schedule DATE: January 29, 1993 DISTRIBUTION: Circulate to appropriate staff Place in ARL Volume 5, Section VI . MEMORANDUM Attached are the recommended procedures for the valuation of oil and gas drilling rigs in 1993. The values contained within these procedures are based on drill rig and equipment sales during the 1992 calendar year. The Statutory Advisory Committee (SAC) met on March 2, 1993, and reviewed the attached appraisal procedures for use in 1993. The State Board of Equalization has thirty days to review the recommendations of SAC. If there are changes, you will be advised in a separate memorandum of the action of the SBOE. Otherwise, the procedure is effective April 2, 1993. If you have any problems or questions on the use of these procedures, please contact Mike Owen or Bill Hyde at the Division office for assistance. Attachments DW:MO/JRH/jrh 93RIGBUL.DOC/ HYDE NETWORK SD DRILLRIG Amin -n a--s 1313 Sherman Street, Room 419, Denver, CO 80203, (303) 866-2371 t1 TDD (303) 866-5300 FAX (303) 866-4000 930684 2 1993 OIL AND GAS DRILLING RIG (Market Valuation Depth Schedule) MARKET VALUATION DEPTH SCHEDULE To use the market valuation depth schedule, the assessor must physically inspect the rig and determine the following: 1. Actual rig depth capacity. 2. Overall physical condition according to condition ratings shown in the condition ratings section. 3. Additional items such as drill pipe and collars. All operating oil and gas rotary platform drilling rigs are to be valued for 1993 using the market valuation depth schedule found below. RIG CONDITION RIG DEPTH STACKED FAIR GOOD (Market Value in $ per linear foot) 7,499' AND UNDER $4.31 $6.33 $16.92 7,500' TO 12,499' $5.31 $8.88 $19.76 12,500' AND OVER $4. 17 $8. 13 $15. 16 Rig actual values are calculated by multiplying the actual rig depth in feet times the market value per linear foot from the schedule based on rig condition . Additional items such as drill pipe and collars must be added to this value if they are present. The resulting total actual value is then multiplied by the specified year's adjustment factor to determine the specified year's level of value. CONDITION RATINGS Condition ratings must be determined by a physical inspection of each rig using the following guidelines: GOOD - The rig is in good mechanical condition and needs no major repairs or maintenance. It has been overhauled or has had very limited use so that no repairs or replacement of worn parts is necessary. The rig and related equipment will have a low number of operating hours. 930684 3 FAIR - The rig has seen a substantial amount of service or operating hours. A limited amount of use remains in the rig and may require a general overhaul soon. The need for major repairs, overhaul or rebuilding is evident from inspection. STACKED - Stacked rigs are those rigs which have been stacked over a year and are in poor condition. Because of stacking, these rigs show additional physical deterioration which will require additional repairs and/or maintenance to begin operation. Rigs which have been stacked only a short time, do not show additional physical depreciation due to "pickling" (covered with a preservative grease) , or are subject to regular maintenance should be valued using the operating rig depth schedule. The appraiser must evaluate the rig as a whole and assign the rating that most approximates the rig's condition. Do not interpolate between the ratings and values provided. ADDITIONAL ITEMS The schedule values shown for both operating and stacked rigs do not include values for drill pipe and drill collars. Add the following values for pipe and collars: DRILL PIPE - $1.30 per linear foot DRILL COLLARS - 7499' & under $ 720 7500' to 12,499' $ 960 12500' & over $1,080 BASE YEAR LEVEL ADJUSTMENT FACTOR Colorado statutes 39-1-104(12.3) (a) (I) require that the actual value of personal property be adjusted to the base year level of value. For 1993, the base year adjustment factor for drilling rigs is 1.00. 930684 ' 4 DRILLING RIG VALUATION EXAMPLE The subject property is an operating, skid-mounted, rotary drilling rig located, as of January 1, in Carbon County, Colorado. The assessor's physical inspection determined that the rig was originally manufactured to drill to 8,000 feet but had been rebuilt to drill to 10,000 feet. The inspection also noted 12,000 feet of drill pipe and collars. The rig is determined to be in good condition. 10,000' (adjusted rig depth) $19.76 (per foot value from depth schedule) $197,600 Value of rig + 15,600 (drill pipe - 12,000'x $1.30 per foot) + 960 (drill collars - $960 total for 10,000' rig) $214,160 Current level of value of rig and related equipment x 1.00 (specified year's adjustment factor) $214, 160 Specified year's level of value x .29 (statutory assessment rate) $62,106 Assessed value The assessed value is then apportioned, as required in 39-5-113.3, C.R.S, to all counties where the rig was in operation during the previous calendar year. 930684 i Section VII , page 7. 1 SPECIAL PERSONAL PROPERTY ISSUES The purpose of this section is to discuss special issues related to the valuation or administration of personal property. This section of will be added to and revised periodically to include new special issues regarding personal property as they arise. APPORTIONMENT OF VALUE Apportionment means the division of taxable value between two or more counties within the state. Apportionment does not affect the total taxable value of the property. Personal property valuations are apportioned only in the following instances: 1. Movable equipment that is located in more than one county during the year. 2. Oil and gas drilling rigs that are located in more than one county during the year. MOVABLE EQUIPMENT The statutory requirements and definitions for movable equipment apportionments are found in 39-5-113, C.R.S. Original Apportionment All persons owning movable equipment, except owners of oil and gas drilling rigs, that is apt to be located in more than one county during the assessment year must file the following information with the assessor no later than April 15: 1. Kind, description and serial number of the property. 2. Counties where the property will be located during the year. 3. The estimated period of time that the property will be in each county. The taxpayer files this information with the county assessor of the county in which the property was located on January 1. This county is called the County of Original Assessment (C.O.A.) . 15-OPT-AS PUB ARL VOL 5 2-89 Revised 1-91 930684 It is the responsibility of the assessor of the C.O.A. to determine the actual and assessed value of the movable property for the entire assessment year. The assessor of the C.O.A. is also responsible to make apportionments of value for the subsequent counties listed by the taxpayer. The taxpayer must be notified of the assessed valuation and the apportioned values of the movable equipment. The apportionment is based upon the number of days that the property is located in each county. Example: Subject Property: Portable Highway Sprinkler Systems (Privately Owned) . C.O.A. : Larimer County 1989 Actual value estimate: 525,000 Adjusted to Specified Level of Value: $24,750 Assessed Value (@ 29%) : $7,180 Counties and Time Estimates for Each County: County Est. Time Property to be Located in County Larimer 45 days Boulder 65 days El Paso 120 days Adams 135 days 365 days Actual Value per Day: $24,750 -:- 365 - $67.81 Apportionment of Value to Each County Larimer: 45 days Apportioned Value: (45 x $67.81) - $3,051 Boulder: 65 days Apportioned Value: (65 x $67.81) . $4,408 El Paso: 120 days Apportioned Value: (120 x $67.81) - $8,137 Adams: 135 days Apportioned Value: (135 x $67.81) - $9,154 Total : 365 days 24 750 15-DPT-AS PUB ARL V0L 5 2-89 Revised 1-91 330654 Section VII, page 7.3 The taxpayer and each of the three counties is notified of the apportioned value by the Larimer County assessor. The value of the movable equipment is included on the abstract of assessment. The subsequent counties are required to use the valuation and the apportionment provided by the assessor of the C.O.A. Any protests of value by the taxpayer are made to the C.O.A. Amended Apportionments If movable property is moved into a county not listed in the original declaration or if movable property is located in a county for a different length of time than that originally declared, the assessor of any county so affected shall request an amended apportionment from the count, of original assessment. This must be done whether the time the equipment is located in the county is shorter than or longer than the period of time used in the original apportionment. The assessor of the C.O.A. , upon receipt of such a request for amended apportionment shall reapportion the values to all affected counties accordingly. The taxpayer and the affected counties must be notified of any amended apportionments. If any county fails to request the amended apportionment, the original apportionment shall stand for that assessment year. When the change in apportionment occurs after the abstract of assessment is filed, the assessors recertify the valuation to the taxing jurisdictions affected pursuant to 39-1-111(5) C.R.S. . If the change in apportionment occurs after the tax warrant has been delivered, an abatement or additional assessment will be made by the affected counties. OIL AND GAS DRILLING RIGS The term "oil and gas drilling rig" means any drilling unit capable of drilling oil and gas wells, except vehicle mounted rigs subject to the specific ownership tax. In addition, the term includes the auxiliary equipment which is not permanently attached to a vehicle which is self- propelled or capable of being towed. A complete description of an oil and gas drilling rig is found in SECTION VI, OIL AND GAS EQUIPMENT. 15-OPT-AS PUB ARL VOL 5 2-89 Revised 1-91 930684 Section V , pace The statutory requirements regarding the apportionment of the valuations • of oil and gas drilling rigs are found in 39-5-113.3 C.R.S. Beginning January 1, 1987 the procedure is as follows: 1. County assessors shall determine those rigs that were operating in their counties during the previous calendar year and mail DS 056 declaration schedules to the owner or agent. 2. The owner or agent submits a declaration listing all rigs that were located in the county during the previous year, and attaches the drilling log for each rig. 3. The owner or agent sends an inventory of the rigs equipment sufficient to determine the valuation for assessment to the assessor of the first county in Colorado listed on each rig's log. The declaration must be filed with the assessor no later than April 15. 4. The assessor in the county of original assessment values the rig and apportions the value between the counties listed on the drilling log according to the period of time the rig was located in each county. 5. The value apportioned to each affected county is based on the proportion that the actual number of days the rig was located in each county bears to the full calendar year. The minimum 25 • percent of full year valuation provision of 39-5-110(2) , C.R.S. does not apply to oil and gas drilling rigs that are located in Colorado for a total period of time that is less than 25 percent of the full year. 6. On or before June 15, the assessor furnishes a copy of the valuation for assessment and the apportionment to the owner/operator. Also by June 15, the assessor sends the valuation, apportionment, and a copy of the drilling log to every county assessor involved, and the assessors must use the values as apportioned by the assessor of the C.O.A. 7. The apportioned rig values are listed in the abstract of assessment. 15-OPT-AS PUB ARL VOL 5 2-89 Revised 1-91 930684 Hello