I recently received a letter from Noble Energy informing me that they were going to “true up” payments for Ad valorem tax to Weld County. The letter states if Noble under withheld the tax from my mineral payments they would deduct the amount of underpayment starting with my April 2019 check, which may result in no checks until the underpayment is trued up. They also state that if they over withheld I would be paid the amount over withheld.
My questions are: 1. Has anyone else been notified by Noble or anyone else this was going to happen? 2. Isn’t the Ad valorem tax known for the year it’s assessed? 3. How far back can Noble go to recoup or pay the difference in this tax? My letter mentions tax year 2011 which is based on 2010 production and with the tax being paid in 2012.
Thanks in advance for your response.