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HomeMy WebLinkAbout20182393.tiffAugust 2, 2018 Petitioner: ECOVAPOR RECOVERY SYSTEMS 700 17TH ST STE 950 DENVER, CO 80202-3548 CLERK TO THE BOARD PHONE (970) 400-4226 FAX (970) 336-7233 WEBSITE: www.co.weld.co.us 1150 O STREET P.O. BOX 758 GREELEY CO 80632 Agent (if applicable): RE: THE BOARD OF EQUALIZATION 2018, WELD COUNTY, COLORADO NOTICE OF DECISION Docket #: 2018-2393 Appeal #: 2008217977 Hearing Date: 8/2/2018 8:30 AM Dear Petitioner: On the day indicated above, the Board of County Commissioners of Weld County Colorado convened and acting as the Board of Equalization, pursuant to C.R.S. Section 39-8-101 et seq., considered petition for appeal of the Weld County Assessor's valuation of your property described above, for the year 2018. Account # Decision The Assessment and valuation is set as follows: Actual Value as Actual Value as Set by Determined by Assessor Board P9101502 Deny - Denied in Full $1,592,305 $1,570,267 A denial of a petition, in whole or in part, by the Board of Equalization must be appealed within thirty (30) days of the date the denial is mailed to you. You must select only one of the followinq three (3) options for appeal: 1. Appeal to Board of Assessment Appeals: You have the right to appeal the County Board of Equalization's decision to the Colorado Board of Assessment Appeals. A hearing before that Board will be the last time you may present testimony or exhibits or other evidence, or call witnesses in support of your valuation. If the decision of the Board of Assessment Appeals is further appealed to the Court of Appeals pursuant to C.R.S. Section 39-8-108(2), only the record of proceedings from your hearing before the Board of Assessment Appeals and your legal brief are filed with the appellate court. All appeals to the Board of Assessment Appeals filed after August 10, 2016, MUST comply with the following provisions of C.R.S. Section 39-8-107(5): (5)(a)(I) On and after August 10, 2011, in addition to any other requirements under law, any petitioner appealing either a valuation of rent -producing commercial real property to the board of assessment appeals pursuant to section 39-8-108(1) or a denial of an abatement of taxes pursuant to section 39-10-114 shall provide to the county board of equalization or to the board of county commissioners of the county in the case of an abatement, and not to the board of assessment appeals, the following information, if applicable: (A) Actual annual rental income for two full years including the base year for the relevant property tax year; (B) Tenant reimbursements for two full years including the base year for the relevant property tax year; (C) Itemized expenses for two full years including the base year for the relevant property tax year; and (D) Rent roll data, including the name of any tenants, the address, unit, or suite number of the subject property, lease start and end dates, option terms, base rent, square footage leased, and vacant space for two full years including the base year for the relevant property tax year. (II) The petitioner shall provide the information required by subparagraph (I) of this paragraph (a) within ninety days after the appeal has been filed with the board of assessment appeals. (b)(I) The assessor, the county board of equalization, or the board of county commissioners of the county, as applicable, shall, upon request made by the petitioner, provide to a petitioner who has filed an appeal with the board of assessment appeals not more than ninety days after receipt of the petitioner's request, the following information: (A) All of the underlying data used by the county in calculating the value of the subject property that is being appealed, including the capitalization rate for such property; and (B) The names of any commercially available and copyrighted publications used in calculating the value of the subject property. (II) The party providing the information to the petitioner pursuant to subparagraph (I) of this paragraph (b) shall redact all confidential information contained therein. (c) If a petitioner fails to provide the information required by subparagraph (I) of paragraph (a) of this subsection (5) by the deadline specified in subparagraph (II) of said paragraph (a), the county may move the board of assessment appeals to compel disclosure and to issue appropriate sanctions for noncompliance with such order. The motion may be made directly by the county attorney and shall be accompanied by a certification that the county assessor or the county board of equalization has in good faith conferred or attempted to confer with such petitioner in an effort to obtain the information without action by the board of assessment appeals. If an order compelling disclosure is issued under this paragraph (c) and the petitioner fails to comply with such order, the board of assessment appeals may make such orders in regard to the noncompliance as are just and reasonable under the circumstances, including an order dismissing the action or the entry of a judgment by default against the petitioner. Interest due the taxpayer shall cease to accrue as of the date the order compelling disclosure is issued, and the accrual of interest shall resume as of the date the contested information has been provided by the taxpayer. Appeals to the Board of Assessment Appeals must be made on forms furnished by that Board, and must be mailed or delivered within thirty (30) days of the date the denial by the Board of Equalization is mailed to you. The address and telephone number of the Board of Assessment Appeals are: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, Colorado 80203 Telephone Number: 303-864-7710 Email: baa@state.co.us Fees for Appeal to the Board of Assessment Appeals: A taxpayer representing himself is not charged for the first two (2) appeals to the Board of Assessment Appeals. A taxpayer represented by an attorney or agent must pay a fee of $101.25 per appeal. OR 2. Appeal to District Court: You have the right to appeal the decision of the Board of Equalization to the District Court of the /county wherein your property is located: in this case that is Weld County District Court. A hearing before The District Court will be the last time you may present testimony or exhibits or other evidence, or call witnesses in support of your valuation. If the decision of the District Court is further appealed to the Court of Appeals pursuant to C.R.S. Section 39-8-108(1), the rules of Colorado appellate review and C.R.S. Section 24-4-106(9), govern the process. OR 3. Binding Arbitration: You have the right to submit your case to binding arbitration. If you choose this option, the arbitrator's decision is final and you have no further right to appeal your current valuation. C.R.S. Section 39-8-108.5 governs this process. The arbitration process involves the following: a. Select an Arbitrator: You must notify the Board of Equalization that you will pursue arbitration. You and the Board of Equalization will 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 (i.e., Weld) will select the arbitrator. b. Arbitration Hearing Procedure: Arbitration hearings are held within sixty (60) days from the date the arbitrator is selected, and are set by the arbitrator. Both you and the Board of Equalization are entitled to participate in the hearing. The hearing is informal. The arbitrator has the authority to issue subpoenas for witnesses, books, records documents and other evidence pertaining to the value of the property. The arbitrator also has the authority to administer oaths, and determine all questions of law and fact presented to him. The arbitration hearing may be confidential and closed to the public if you and the Board of Equalization agree. The arbitrator's decision must be delivered personally or by registered mail within ten (10) days of the arbitration hearing. c. Fees and Expenses: The arbitrator's fees and expenses are agreed upon by you and the Board of Equalization. In the case of residential real property, the fess may not exceed $150.00 per case. For cases other than residential real property, the arbitrator's total fees and expenses are agreed to by you and Board of Equalization, but are paid by the parties as ordered by the arbitrator. If you have questions concerning the above information, please call me at (970) 400-4226. Very truly yours, Esther E. Gesick, Clerk to the Board Weld County Board of County Commissioners and Board of Equalization Cc: Christopher Woodruff, Weld County Assessor Weld County CHRISTOPHER M. WOODRUFF COUNTY ASSESSOR BRENDA DOMES DEPUTY ASSESSOR VALUATION REPORT OF PERSONAL PROPERTY FOR County Board of Equalization Ecovapor Recovery Systems PETITIONER Vs. WELD COUNTY ASSESSOR'S OFFICE RESPONDENT Schedule Number: P9101502 Log Number: 2008217977 Date: 8/2/18 Board: Board #1 PREPARED BY Sean McElroy 08/02/18 Signature Date ASSESSOR'S OFFICE STAFF APPRAISER Personal property is e erything that is the subject of ownership and that is not included in the term `real property'. This includes machinery, equipment and other articles related to a commercial or industrial operation that are either affixed or not affixed to the real property. Leased Vapor Recovery Units are classified as personal property. Personal Property values shall be determined by appropriate consideration of the Cost Approach, Market Approach, and Income Approach to value. § 39-1-103(5)(a) C.R.S. Page 3.01 in the Colorado Assessor Reference Manual states For Colorado personal property assessment purposes, the actual value is the value in use, as installed. Colorado statutes require that personal property be valued inclusive of all costs incurred in acquisition and installation of the property. The costs of acquisition, installation, sales/use tax, and freight to the point of use must be considered in the personal property valuation. The inclusion of these costs requires that personal property be valued in use. Therefore, the actual value of personal property is based on its value in use Furthermore page 3.19 of the Colorado Assessor Reference Manual states The assessor is appraising property at value in use not at liquidation value. ASSESSOR'S CURRENT VALUE Account if Actual Value P9101502 $1,570,267 2 HISTORY OF SUBJECT PROPERTY Below is an excerpt from Ecovapor's website. Since 2010, EcoVapor Recovery Systems has been helping leading E&P operators capture more production, increase uptime, generate more revenue and improve wellsite safety with our innovative solutions for capturing tank vapor gas and removing oxygen. We bring an independent and unbiased approach to understanding and solving the rising challenges E&P operators face when developing and producing hydrocarbon assets. Our diverse team of technical experts come from multiple backgrounds, and not all are from the oil and gas industry, giving the ability to put fresh eyes on problems and develop innovative, patented, out - of -the -box solutions.1 EcoVapor Recovery Systems Website (accessed July 27, 2018); http://www.ecovaporrs.com 3 COST APPROACH NARRATIVE The values on this account were originally derived from an asset listing supplied by the petitioner with their 2018 Personal Property Declaration. The declaration was submitted electronically to our office by the taxpayer and it was reviewed and valued by our appraiser. They included 17 Vapor Recovery Units that are leased to various well sites. The declaration was signed by the owner/agent declaring that the information provided on the declaration included a full and complete list of property and that no attempt had been made to mislead the Assessor as to its age, quality, quantity or cost. The Colorado Di\ ision of Property Taxation (DPT) publishes tables that are used in the cost approach to establish the value. An inflation factor is used to calculate the replacement cost new (RCN) values for all reported equipment. Then an economic life for the equipment is determined and an age for the equipment is calculated. With an economic life and an age determined for the equipment, a percent good is applied to the RCN value for the equipment to find the replacement cost new less depreciation (RCNLD) value. A level of value (LOV) is then applied to the RCNLD to reach the actual value for the equipment. The LOV is used because C.R.S. 39-1- 104(12.3)(a)(I) requires personal property to be adjusted to the June 30 appraisal date. The DPT tables have been attached to this report. The economic life tables are developed from the IRS, Marshall Valuation Services and other sources. The percent good tables are assembled from the Iowa State University property retirement & depreciation studies. The minimum value on the general percent good table is 15% because Colorado is a value in use state. This means that nothing is ever fully depreciated as long as it is in use. For technologically advanced personal property the floor value is 7%. Since no original installed cost information was provided for these assets, the Weld County Assessor has not derived a value using thecost approach. 4 MARKET APPROACH Pursuant to the Colorado Revised Statutes the Assessor has considered the Market Approach. This approach is an appraisal technique in which the market value estimate is predicated upon prices being paid in the actual market. It is a process of correlation and analysis of similar recently sold properties. The reliability of this technique is dependent upon: 1. The degree of comparability of each property with the property under appraisal; 2. The time of the sale; 3. The verification of the sale data; 4. The absence of unusual conditions affecting the sale. The assessors of the several counties of the state, with input from industry and approval of the Property Tax Administrator, developed an equipment valuation method using Basic Equipment Lists (BELs) and valuation grids. The BELs were developed for the different types of oil and gas wells found in the state, and are used to identify and value equipment common to each particular type of well by basin, depth, production level, and method of production. The BELs are a market valuation for the production equipment inclusive of acquisition cost, installation cost, sales/use tax and freight to the point of use.. County Assessors are required to use the BELs to value production equipment. "The BLLs and the valuation grids shall be used to determine the actual value of the production equipment." 4 The following information was used to determine the value of the vapor recovery units by condition from the BEL tables. Very Good 4' The equipment is in near -perfect to perfect working condition. It has had limited use and has a long service life ahead. This includes equipment associated with a well that is zero to less than five years o -. Average The equipment is in good mechanical condition and needs no major repairs or maintenance. This includes equipment associated with a well that is five to less than fifteen years old. Minimum The equipment has had a substantial amount of service, a limited amount of use remains. Equipment associated with a well that is fifteen years old or more, or equipment associated with a well that meets stripper well status, should be classified as minimum condition equipment. Vapor Recovery System Very Good Average Minimum (Includes Manifold/Pumps) 94,611 72.350 16,697 2 Colorado Assessor's Reference Library Volume 5 pg 6.1 Colorado Assessor's Reference Library Volume 5 pg 6.3 Colorado Assessor's Reference Library Volume 5 pg 6.2 5 Colorado Assessor's Reference Library Volume 5 pg 6.10 5 The table below shows the summary of EcoVapor Recovery Systems BEL value calculation. Unit Age Unit Condition Market Value Per Unit Quantity Total Value LOV Actual Value Average $72,350 I $72,350 .99 $71,627 4 Very Good $94,611 10 $946,110 .99 $936,650 3 Very Good $94,611 4 $378,444 .99 $374,660 Very Good $94,611 2 $189,222 .99 $187,330 $1,586,126 $1,570,267 The actual value of $1,570,267 was established by determining the appropriate condition based on age of the vapor recovery units and applying the value for them by condition from the BEL tables as mandated by the DPT through C.R.S §39-2-109(e). The Colorado Property Tax Administrator is required to... C.R.S. §39-2-109(e) To prepare and publish from time to time manuals, appraisal procedures, and instructions, after consultation with the advisory committee to the property tax administrator and the approval of the state board of equalization, concerning methods of appraising and valuing land, improvements, personal property, and mobile homes and to require their utilization by assessors in valuing and assessing taxable property. Said manuals, appraisal procedures, and instructions shall be based upon the three approaches to appraisal and the procedures set forth in section 39-1-103 (5) (a). Such manuals, appraisal procedures, and instructions shall be subject to legislative review, the same as rules and regulations, pursuant to section 24-4-103 (8) (d), C.R.S. (emphasis added). MARKET APPROACH VALUE $1,570,267 INCOME APPROACH Pursuant to the Colorado Revised Statutes the Assessor has considered the Income Approach to value on Personal Property. This approach considers value in relation to the present worth of future benefits derived from ownership and is usually measured through capitalization of a specified level of income. This approach is the least common approach used in the valuation of machinery and equipment, since it is difficult to isolate income attributable to such assets from the income attributable to the services received from the assets. Leased property is one of the few assets thatthe income can be isolated to assets and not the services received from the assets. Using the direct capitalization method and estimating the net operating income from the gross operating income, provided by EcoVapor. The following table shows the income approach to value for these assets. Gross Income Net Income Cap Rate Income Value Each LOV Actual Value Each Qty' Total Actual Value $41,400 $28,000 13% $216,383 99% $214,219 17 $3,641,731 INCOME APPROACH VALUE $3,641,731 VALUE SUMMARY Cost Approach Value N/A Market Approach Value Income Approach Value $1,570,267 $2,968,725 CONCLUSION The subject property has been classified as Personal Property for property tax purposes. Personal Property values shall be determined by appropriate consideration of the Cost Approach, Market Approach, and Income Approach to value. §39-1-103(5)(a) C.R.S. The Assessor reviewed the Cost, Market and Income approach to value and selected the Market Approach as the most accurate method for determining the value. After consideration of the three approaches, it is the Weld County Assessor's request that the value be set at $1,570,267 for the tax year 2018. FINAL VALUE $1,570,267 7 ADDENDUM 4-A INDUSTRY CAllEGORY TABLE Types of Personal Property included in Industry Cate: Indust'"? Category Table Irrduftot Care Nunrrbi.r -oaf PlOpettE.1pe 1 Average of All Cared -y and Confecth.onery _ Creamery and Dairy., Flour. Cereal and Feed, Garage, Meat PacktnF_ Plaint, nt, Refrigeration anE. Rubber Office Penonal Property (excluding copiers and other technologically advanced personal property) 4 Retail and. Wholesale Stores, Warehousing 5 Rental Furnithings, Aparlment.L. Hotels and Motels 6 Banks, Savings and Loans, Restaurants and. Lounges, and Theaters. 7 e Contractors Personal Property 8 r . Cleaning Per on:i i Property 9 Industrial BaketT., Bo t-tlin _ C:Rlill eri s, and Fruit Packing ._ I Brewing and. Distil n Cement. L Thv Products, Glass, Mme](., logging„ 1 Metal t orking, Mti nip _ u and , Milling 'cal,. 1 °lan fac-tnarinp of Chemical.., El -M1 Papa!: Motion. Piettffes and 11 Television, Panting, and. Woodworking Personal Property 12 All Petroleum, Oil, Gas, Ethan. Bie-di el,: and Textile , Comer and, PC, iinputcr-into grated P ers o Property, Telephone ; t d. 13* Tic*IIF tii in :. Lion Personal Property, and Copiers '14 Renewable Energy Personal Property Source: lidlushall'Valuation Senrice *Please refer. to Chapter 7, Special Is su e a L guider rte t h,i,i oio . c alit. _A.ahami red Personal Pr ope ,, for more information. 17--DPT ARL VOL .5 2-89 Rfro 1-18 6.23 8 g ADDENDUM 4—B, COST FACTOR TABLES 2018 PERSONAL PROPERTY COST FACTOR TABLE 11 IA eise 1992 1993 1994 1995 1996 1997 1995 1999 2000 2.002 2003 2004 2005 2006 2007 2009 0100 2011 2012 2013 2014 2015 2017 Industry C 1 1.69 1.66 1.62 1.56 1.54 1.65. 1.62 re 1.:.2 S 1.5 1.55 1.52 1A7 1.50 1.45 I.52 1.1S 1..50 1.47 1..16 1.47 1.16 1.44 1.13 1.45 I 1.42 138 .29 1..23 1.13 ..a9 1.10 1.,5 . 2 1.21 1.16 1. os 1.10 1.09 ..07 1.04 1.03 1.02 1.01 1.02 1.06 1.03 1.03 1.01 1.01 1.0? 1.00 I 1.00 1.13 1.42 1.12 1.40 1.38 1.36 aLiegory Number o 1.68 1.67 1.61 1.62 1.58 1.5 6 1.62 1. 0 1.59 1.65 1.54 1.5. 1.19 1.52 1.50 1c17 L48 1.46 1 A 1.'1:5 11.49 1.4 1.57 1.54 I ..51 1.45 1.50 IAi1 1..19 1.4_5 1.43 1.012 1..43 1.40 I:AI 1.39 1.33 1.26 1.21 1.16 1.12 1.09 1.10 1.07 1.04 1.4 1.03 1.36 1.,5 .. 1._.3 1.42 1..46 IA IA5 1.44) 1.44 1.38 1.34 138 1.26 1..71 1.18 1.19 1.14 1.15 1.12 I..08 1.0') 1..06 1.05 1.21 1.2 1..19 1.13 1.12 1.10 113 1.08 1.05 1.06 .us 1.03 1.03 1.03 1�.03 1.02 1.02 .02 1.0?. 1.0 L02 1.02 1.02 1.02 1.00 1.00! 1.00 Source: .Miutal1 Valuation Service 1 7 -Are —rarer ARI VOI 5 7 —fig Rcw 1-11i , October 2017 9 ADDENDUM 4-B1 COST FACTOR TABLES CONTINUED... 2018 PERSONAL PROPERTY C OSI FACTOR TABLE 1992 193 1994 1095 1996 1997 1998 1909 000 2001 2002 200. 2004 suit 2005 20061 2007 2008 2009 010 2011 201°2, 201 3 X014 2015 2;016 2017 Industry Category Number 1.7R 1.69 1.6 1.57 1.51 1,53 1.5 1.50 1.*19 c 1.40 1.30 1.24 1.18 1.13 1.10 I .' 1.04 1.03 1.02 1.01 1.02 1.00 9 1` 1l 12 13 1.1 1.73 1.7 1.65 .. 1.57 � I..51 1.53 1.53 1.51 1.10 1.4w 1.15 1.40 1.29. 1.16 .08 1.76 L68 1.76 1.00 LOU 1_i6 1.1 1.00 1.00 1.70 1-; 1.71 1.00 1.00 1.64 1.65 1.00 LOU 1.61 1.53 1.62 1.00 1.00 1'5 1S-. Y 1.57 1.00 1.00 1.58 1.00 1.00 _2 1.54 [.0a0 1.00 1.54 L49 1.00 1..00 1.53 I AS 1.: 1.00 LOU 1.5-11 L48 1.50 1.00 1.00 1.19 _�•16 1.-1S 1.00 1.00 1.43 L40 1.43 1.00 1.00 1.31 1.00 1.26 1.21 1.'4 LOG LOU 1.19 11 6 1.00 1.1 1.06 1.03 .0ti 1.01 I.01 1.02 1.00 L14 LO 1.00 LOU 1.09 1. 6 1.07 1.00 1.00 1.04 LO7 1.08 1.00 1.00 1. 2 1.06 1.00 LOU 1.00 1.03 1.00. 1.00 1.03 1.00 1.02 I.0O LOU 1.02 1.00 1.01 1.00 1.00 1,.01 1-00 1.00 1.00 1.00 1.02 1_02 1.01 1.00 1.00 LOG LOU 1.4) 1.00 LOU Source: Marsha. Valuation S e. nice, October 2017 17 -AS- DPT ARI V Ol 5 Rico,: 1-1A 10 11 ADDENDUM 4-Cr ECONOMIC LIFE ESTIMATES Recommended PROPERTY TYPE E Bono " 1-i a Life (yean) IC'Olidan a':CL personal property 9 Wl i'1 1;e retail s, calculators 6 olli-rierairreithacu '4fl Yi• ir addi7�lona modal; l; sn 'Own? r S7) ■Y i 6 .1l.czenax t parks . 12 dahrialPiaald Uer i'T,lelll SC b ( MitV. se Chapter 7 COMSAT i e'iecI rian' c OM= I wham 4 Sin:rural 1 10 AlliD , 1 1- repair ho �0 0 210 tat docas Emberand 'LPea.ut shops ,,.�}} } 7,py� ie a ild iii' 1�' °.4i i 4 1 1 to 1 1 ' T �yq Ch �,p� on: adaT i ' ��tl LP� its 'Ch '�if-J� 2) , Computers t accessories 36 - personal fiainputen - and Mani-aloneMani-alone peri her 4 other Cow= -integratedpersonal property 4 Construct, on personalproperty„general6 'Copiers ,° Data handling p th1 6 lard; except ci'c E'nik personal Pr0PETrit, 6 tw r t COMM= or gala F . - 10 , Gaming.- (zee Ch i . ) Electronic ('e! 4., slot machi„ ) 5 Lariat P mfhthpi personal pronerty (t e.., tbb1eS) 10 Gas 'p7u staSr2 r fp E k c. LL' 1: J.11t�. d Genii 10 Tomah (e.g.,above growl, ix'. Ionia- ) 10 Tam (e. 20 !mod,. ]e- Thedd, fuel) p q .aE S 20 H e'GIe1Yic CEDE Golf 6 ca Laundry 10 andcleaning Machinery arn�y�l�r equipment (aot �otherwise �gy���:, seenaps? MMetere l sonal is r{il ttart lJ . �tr see 'i) }1�0 3 to 10 � property 6 Office 10 furnime . .eab s 10 Photo processingpersonal propertv (electronic) 6 Port-a-pcxtty 10 Rath on broadcasting 6 L, and Recreation and guzaasement 10 I '-4. t; II .ail nil 10 tar '4__ Renewable to l property 20 Commercial Cows' n next paw Use apprirfira Vain athariced caviare peentgoal l'aS Sources: DiVilink of Priverty Taxation; Marshall Valuation Service, I.R.S. 17- -DP T' SILL'VOL .5 2-89 Rev 1-18 11 12 ADDENDUM 4-C, ECONOMIC LIFE ESTIMATES CONTINUED.... l +r m� ended PROPERTY TYPE E Leone i I: e Lire (years) C O HCIAL (co atin ilea) Rita Rafts 1(1 5 Slopping carts Sip (billboard arid t ) 20 Signs. (other) 10 Sims (e1. nic) 6 Snow t: Otr additional nvitrmation zati Okrietar ") Henry use (e.g., snow -grooming operations) 6 Moderate iic (e_ g., aanspeataiican J ! o cans) 10 Stoma Tanks (e.g., above gromml, propn, septic) 10 Thanks (e. g.,, below mot driobleanalled,fuer, 20 Telecomnimicati it it': property: High Tech .■ (axc hiJi np mp a nn) 4' Theater 10 Typewriters 6 y 10 __jin Video �(.� s (a cad ) 6 NATURAL O RESOURCES I .8Sing - Mnallie vial NtutitrialEr Aj All & s gJii ., . cranes (with 50+ in liftcapacity) 20 E ]ECIXiC mining shovels 15 otbEr in i mht cr,gr ;min & milting p& song 'property 10 , Peolem and Natural Gas ' Iii- 6 f ghgh- l ]gr drilling rigs 10 Exploration and Prectaction rexclaiiing, o es) 14 Marketing, Mail. P Machin (mot owe listed) 10 .. ' it iii 6' 16 � ° Tinier IA Ming 6 Sawmills.. permanent 10 portable 6 * Efige apply -pimp torimologicarte admired comperrarpircenz.grood ale. 17 -AS -OPT AFL VOL 5 2-89 Rev 1-18 12 ADDENDUM 4-C, ECONOMIC LIFE ESTIMATES CONTINUED... ir �iended PROPERTY TYPE Eton tw t Life (years) DTITS TRIAL Aerospace 10 , Apparel and fabricated tellies P Bakeries and Confectionery 12 Brewery 12 Cates and. frozen fwd 12 Cement manalattume 20 Cerealflour, grain :'MP min products 17. Coals and related moth= 10 ! fir and gvp sal product s 15 Comage manufacture 15 Dairy pests manufac nnng 12 L Eaectri€al pent property manufacturing 10 Elm oersonaluroperm maunfacturine d Fab i.cited metal pints 1 Roil and beage per on 12 Special handling dervic BS 4 Farkii its 10 Glass an glass prod= 14 'fin Bins 20 Jewel 12 Lumber, wood.pr is and furniture 10 Ma (not otherwise listed) 10 Meat packing 12 Motion picture aid t lethiCa aitUdliCtion 12 Paint and vanish 10 Plastics and plastic products 11 .ruing and publichi g 11 Professional and scientific insirimieuts 10 Paperboard aid ''RI. 10 Rubber pry. 14 Jl t ii 6 : personal property 16 _ Sc S —ont eaor J} • r r o - General 5 Rah and development 3 Test per! pry 5 War fbricati 3 Soft drink bottling 12 Special tools (all industries) ies) 3 Steel ad related pmts 15 Stone products 15 Sugar and sugar pi hiUs 18 Sources: Division of Property Taxation, i i V3 ' Service, & I:.F..E. 17- -Di' I RILL VOL 5 2-89 Rev 1-1.S 13 14 ADDENDUM 4-D, GENERAL PERCENT GOOD TABLES 2018 GENERAL, PERCENT GOOD TABLE Average Economic Life in Years_ 3 4 5. 45 7 8 9 10. 1-1 12 13 14 15 16 17 11 19 20 68 76 81 85 8 90 91 92 93 94 95 95 96 96 97 97 97 97 38 53 63 7C 75 79 82 84 86 88 89 90 91 92 93 94 94 93 17 33 46 55 62 62 72 76 79 81 83 85 87 88 89 90 91 92 15 18 30 40 50 57 63 67 71 75 77 80 82 84 85 86 88.89 15 18 29 3g 47 53 59 68 71 74 77 79 .1 83 84 86 15 19 2..8 37 44 50 56 61 65 68 71 74 77 79 80 $ 15 20 22 36 42 49 54 59 63 66 69 72. 75 7i 79 15 20 28 3.5 42 47 32 _57 61 64 67 70 73 75 15 21 28 34 4 46 51 55 59 62 66 69 71 1: 45 68 40 I 64 1 1 34 44 47 52 5760 rip; e 1 0 30 - 56 1.5 21. 25 30 3 38 5 1! 19 25 31, 3.5 40 48 1 18 44 15 1 2 140 36 1� 1 32 1 1 20 25 29 17 22 26 15 19 2.3 1. 20 1.5 18 16 1.5 See: Division of Property Taxation 17 -AS -OPT ARL VOL 5 249 Rev 1-18 Rate jiZail 14 16 ADDENDUM -4—E, LEVEL ^ F VALUE FACTORS 2018 PERSONAL PROPERTY WV FACTOR TABLE 'hue 30, 2016 Level of Value Industry CategorT Number 1 2 3 4 55 sY' 7'�j{ 8 9 10 11 1' 13 14 Fixtures. & Leasehold :74 OV Factor 038 0.98 038 0.92 0_98 0.92 0.92 0.98 038 0.98 0_99 1.00 1.00 038 Smime: ThIris ion c -f Property Taxation sin M4- 11 Vale lion Spice 1 �: PT ARIL '!I L 5 241g Rev 1-16 15 ADDENDUM 6-C, 2018 ADDITIONAL INSTALLED EQUIPMENT LIST Description Cathodic Protection Unit with Rectifier with Solar Panels Chemical Pump & Tank Circulation Pump Unit Combuster Small Combuster (<50" Diam x 10') Dehydrator (up to 5 mmscf /day) Filter Vessel (average all sizes) Flanged Immersion Heater Tank Heaters Fuel/Chemical Tanks (500 gallon) Free Water Knockouts 30" x 10' 4' x 10' 6'x10' 8' x 10' 4'x15' 6'x20' Gas Booster Line Compressor Compressor (15-30 HP) Compressor (30-50 HP) Compressor (50-100 HP) Compressor (100-1SOHP) In -Line Heater LACT Unit Measurement Equipment Meter Run/paper-chart recorder/with 2" Meter Run, Sending Units & RTU Recycle Pump Sound Panels (Galvanized Steel) Wall & Roof Panels/SqFt (Padded) Condition Rating Very Good Average 9,523 23,433 2,120 16,731 37,844 20,739 38,342 16,557 6,208 1,015 5,916 8,953 13,435 17,916 11,826 16,791 43,919 56,468 119,210 159,280 8,042 68,717 11,206 27,221 1,146 8.66 7,282 17,919 11621 12,794 28,940 15,860 29,320 12,662 4,747 776 4,524 6,846 10,273 13,701 9,044 12,840 33,586 43,181 91,160 121,802 6,150 52,549 8,570 20,816 876 6.63 Minimum 1,681 4,136 374 2,952 6,679 3,660 6,766 2,922 1,096 179 1,044 1,580 2,371 3,162 2,087 2,963 7,750 9,965 21,037 28,109 1,419 12,127 1,978 4,803 203 1.53 15-AS-DPT ARL VOL 5 1-89 Rev 4-18 16 6.24 2018 ADDITIONAL INSTALLED EQUIPMENT (Cont.) Description Triplex Water Injection Pump 75 HP Electric Motor Vapor Flare System (Enclosed Stack) Vapor Recovery System (Includes Manifold/Pumps) Vapor Recovery Tower Water Flow Lines — Steel (per foot) Water Flow Lines — Poly (per foot) Very Good Wellhead Threaded (Total Value)* Flanged (Total Value)* Flanged (Differential}** Flanged/Threaded Combo(Differentialr* Waste Oil Recycling operations Tank(1) 300BBL Separator 30" x 10' Vertical Separator 24" x 10' Horizontal 51,787 30,219 94,611 32,367 9.27 8.01 21838 9,860 7,022 9,860 18,524 7,629 14,436 Condition Rating Average 39,602 23,110 72,350 24,751 7.09 6.13 2,170 7,540 5,370 7,540 14,166 5,833 11,039 Minimum 9,140 5,333 16,697 5,712 1.64 1.42 * For use only with wells having dual wellheads on same wellbore. ** For use only in basins where threaded wellheads are typical. (see Valuation Procedures) 15-AS-DPT ARL VOL 5 2-89 Rev 4-18 501 1,740 1,239 1,740 3,268 1,346 2,548 17 Secure . h, s%/ ;ec*vapors.ream/sytems-technci!ogy-2/ ECCVAFOR LRECOVERY ied SYSTEMS EcoVapo r's systems ABOUT NEWS y STE & TECHNOLOGY CONTACT DATA S U B MfISSIION FOP.M M Eco a por"s systems focus on pulling vapors directly from oil storage tanks to enable 100% gas capture on site. EcoVapor por- has the right size system ava i I ab e to match to the unique characteristics of your wellsite. The Company's systems can function stand-alone, in parallel with one -another, or in conjunction with low pressure separationand/or vapor tower compression . EcoVa►por's systems can be configured to recover flash gas from oil tanks and other separation vessels, inr_ uclin,g Vapor Recovery Towers (NWT's"), T s"), treaters, and separators. 18 NOTICE OF DETERMINATION Christopher M. Woodruff Weld County Assessor 1400 N 17th Ave Greeley, CO 80631 RECEIVE:. JUL 252018 WELD COUNTY Date of Notice: 07/10/2018 Telephone: (970) 400-3650 Fax: (970) 304-6433 Office Hours: 8:00AM — 5:00PM ACCOUNT NO. GOMMI5blUIlt,t-t TAX YEAR TAX AREA LEGAL DESCRIPTION/ PHYSICAL LOCATION P9101502 2018 0604 LEASED VAPOR RECOVERY UNIT FOR TA 0604 ECOVAPOR RECOVERY SYSTEMS PROPERTY OWNER ECOVAPOR RECOVERY SYSTEMS 700 17TH ST STE 950 DENVER, CO 80202-3548 PROPERTY CLASSIFICATION ASSESSOR'S VALUATION ACTUAL VALUE PRIOR TO REVIEW ACTUAL VALUE AFTER REVIEW PERSONAL PROPERTY 1,592,305 1,570,267 TOTAL 1,592,305 1,570,267 The Assessor has carefully studied all available information, giving particular attention to the specifics included on your protest. The Assessor's determination of value after review is based on the following: PP09 - Your personal property valuation has been adjusted based on additional information which you furnished our office. 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. The deadline for filing personal property appeals is July 20. The Assessor establishes property values. The local taxing authorities (county, school district, city, fire protection, and other special districts) set mill levies. The mill levy requested by each taxing authority is based on a projected budget and the property tax revenue required to adequately fund the services it provides to its taxpayers. The local taxing authorities hold budget hearings in the fall. If you are concerned about mill levies, we recommend that you attend these budget hearings. Please refer to last year's tax bill or ask your Assessor for a listing of the local taxing authorities. Please refer to the reverse side of this notice for additional information. Agent (If Applicable): RECEIVED JUL 2 3 2018 WELD COUNTY ASSESSOR GREELEY, COLORADO 15-DPT-AR ARL V0L 2 1-84 Rev 01-16 2018-2393 .So (00 APPEAL PROCEDURES County Board of Equalization Hearings will be held from July 30th through August 3th at 1150 O Street. To appeal the Assessor's decision, complete the Petition to the County Board of Equalization shown below, and mail, file online, or deliver a copy of both sides of this form to: Weld County Board of Equalization 1150 O Street, P.O. Box 758 Greeley, CO 80631 Telephone: (970) 356-4000 ext, 4225 Online: www.co.weld.co.us/appsl/cboe/ To preserve your appeal rights, your Petition to the County Board of Equalization must be postmarked or delivered on or before July 20 for personal property — after such date, your right to appeal is lost. You may be required to prove that you filed a timely appeal; therefore, we recommend that all correspondence be mailed with proof of mailing. You will be notified of the date and time scheduled for your hearing. The County Board of Equalization must mail a written decision to you within five business days following the date of the decision. The County Board of Equalization must conclude hearings and render decisions by August 5, § 39-8-107(2), C.R.S. If you do not receive a decision from the County Board of Equalization and you wish to continue your appeal, you must file an appeal with the Board of Assessment Appeals by September 10, § 39-2-125(1)(e), C.R.S. If you are dissatisfied with the County Board of Equalization's decision and you wish to continue your appeal, you must appeal within 30 days of the date of the County Board's written decision to ONE of the following: Board of Assessment Appeals District Court 1313 Sherman Street, Room 315 Contact the District Court in the County Denver, CO 80203 where the property is located. See your (303) 866-5880 local telephone book for the address and www.dola.colorado.gov/baa telephone number. Binding Arbitration For a list of arbitrators, contact the County Commissioners at the address listed for the County Board of Equalization. If the date for filing any report, schedule, claim, tax return, statement, remittance, or other document falls upon a Saturday, Sunday, or legal holiday, it shall be deemed to have been timely filed if filed on the next business day, § 39-1-120(3), C.R.S. PETITION TO COUNTY BOARD OF EQUALIZATION What is your estimate of the property's value as of June 30, 2016? (Your opinion of value in terms of a specific dollar amount is required for real property pursuant to § 39-8-106(1.5), C.R.S.) $ 131351 p,ci, cik What is the basis for your estimate of value or your reason for requesting a review? (Please attach additional sheets as necessary and any supporting documentation, i.e., comparable sales, rent roll, original installed cost, appraisal, etc.) -1,0A APP eci'ldl c 6 -6- AO)=,,k /igoi Ifjy#./_ ATTESTATION I, the undersigned owner or agent' of the property identified above, affirm that the statements contained herein and on any attachments hereto are true and complete. SoS- es -3- / ?I191).,0,1i Signature b!� Email Address 6 Telephone Number 'Attach letter of authorization signed by property owner. 15-DPT-AR ARL VOL 2 1-84 Rev 01-16 Date ECOVAPOR RECOVERY SYSTEMS LLC July 19, 2018 Mr. Christopher Woodruff Weld County Assessor 1400 N 17th Ave Greeley, CO 80631 Mr. Woodruff, I am writing to appeal our Notice of Determination for personal property tax for EcoVapor Recovery Systems (Account Number P9101502). We were originally assessed $1,592,305 and per the letter dated 7/10/2018 after review, we are assessed a value of $1,570,267. As you may know from recent email exchanges with Mr. Dave Young, we have raised concern that the changes to assessed value in 2017 compared to 2016, specifically related to Addendum 6-C for "Additional Installed Equipment", dramatically increased the assessed value of Vapor Recovery Systems. In fact, while most equipment had an increase in assessed value, Vapor Recovery Systems had the largest assessed value increase at nearly 10 fold. As you also may be aware, Vapor Recovery Systems play a critical role in mitigating air emissions at oil well sites, especially in Weld County, where such emissions are a leading contributor to ground level ozone problems. I have trouble believing that whoever set these values understood the implication of increasing the cost of vapor recovery which is a significant contributor to reducing air emissions in Colorado. In communication with Mr. Dave Young, I understand there was a stakeholder process to evaluate these values when re -set in 2016-2017. Unfortunately, we were not part of that process. We are requesting tax relief in the form of 2016 assessed rates (a total of approximately $225,000) and respectfully suggest that the county and state review the assessed value of Vapor Recovery Systems. Regards Brewster Boyd Chief Financial Officer EcoVapor Recovery Systems p �F itkiNt F. �r. ckLt— Li&id (oiy �P3sa— Riao A -v -e Gtetley ra 80 63i • vrewwv»s% 470802 PM 7 t RECEIVED JUL 2 3 2018 WELD) COUNTY ASSESSOR GREELEY, COLORADO SO .r.. , Iw.S AM.CC.j7��ii�F������ir��#�����#�#1���}}�i;�4�j��}� July 27, 2018 Petitioner: ECOVAPOR RECOVERY SYSTEMS 700 17TH ST STE 950 DENVER, CO 80202-3548 CLERK TO THE BOARD PHONE (970) 400-4226 FAX (970) 336-7233 WEBSITE: www.co.weld.co.us 1150 O STREET P.O. BOX 758 GREELEY CO 80632 Agent (if applicable): RE: THE BOARD OF EQUALIZATION 2018, WELD COUNTY, COLORADO NOTIFICATION OF HEARING SCHEDULED Docket #: 2018-2393, AS0097 Appeal #: 2008217977 Hearing Date: 8/2/2018 8:30 AM Account(s) Appealed: P9101502 Dear Petitioner(s): The Weld County Board of Equalization has set a date of August 2, 2018, at or about the hour of 8:30 AM, to hold a hearing on your valuation for assessment. This hearing will be held at the Weld County Administration Building, Assembly Room, 1150 O Street, Greeley, Colorado. You have a right to attend this hearing and present evidence in support of your petition. The Weld County Assessor or his designee will be present. The Board will make its 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 5, 2018, and mailed to you within five (5) business days. Because of the volume of cases before the Board of Equalization, most cases shall be limited to 10 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. If you wish to obtain the data supporting the Assessor's valuation of your property, please submit a written request directly to the Assessor's Office by fax (970) 304-6433, or if you have questions, call (970) 353-3845. Upon receipt of your written request, the Assessor will notify you of the estimated cost of providing such information. Payment must be made prior to the Assessor providing such information, at which time the Assessor will make the data available within three (3) working days, subject to any confidentiality requirements. 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, BOARD OF EQUALIZATION Esther E. Gesick Clerk to the Board Weld County Board of County Commissioners cc: Christopher Woodruff, Assessor Hello