Ad valorem tax

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.

Doug Carney

Doug, I got the same letter, But that’s all I can tell you. I don’t know answers that your other questions.

I also got the same letter Doug. I can’t see how they can come back after so many years. Nobel, Anadarko, and Kerr Mcgee I’m not making any royalty money anymore. My mother left me the wells 8 years ago when she passed away. In 2011 the first check I deposited in her account after she died was over $20,000 dollars. The last check I received in March 2019 was $143.00. Something is fishy going on here. All 16 of her wells are in Weld County and have been there since the 1950’s. Can anyone help us?

Mike, I called the Noble mineral owners help line and was told there was not going to be any charges against my property. It isn’t clear to me if that meant the year 2011 mentioned in my letter or for all years. I’ve received one royalty check since then and no charges were made. What confuses me is why Noble didn’t withhold the correct amount in the first place. You might consider calling Noble to see if they are planning on charging you anything or not. Thanks for your reply. My royalty checks have also gone way down the past few years which is to be expected as the wells deplete themselves. My only hope now it that they drill some new wells using current technology to increase production.