Tax Appraisal District valuation challenge

Is it possible to successfully challenge the tax appraisals put out by the tax appraisal districts? I am a very small NPRI owner (percentage wise, not stature). It seems to me the appraised value should have a correlation to the revenue stream. Is there a way to find the “formula” they are supposedly following for the appraisals? In my case, my various wells appraisals range from 17 to 2000 times current monthly income. My revenue has declined 61% from last year to this, but the total appraised value has only gone down 26%. In some cases the taxes on a well will exceed the revenue for the year. In many cases they have raised the appraisal even though the revenue has significantly declined and there are no documented changes that would justify an increase in value.

In Texas, tax valuation depends on the prior year’s average oil price and gas price, the production decline curve and anticipated economic life of the well. It is an engineering valuation which reflects the estimated sales value of your minerals based on income over time, reduced by the present value of future funds. Similar to the value of your house which is supposed to reflect the sales value of your house. The appraisal notice should give you the name of the independent appraisal company and a login for its website to access the detailed workpapers for the appraisal of each well. Such as Pritchard & Abbott or Capitol Appraisal Group. Here is a link to the CAGI site which gives an explanation of the process and the Texas statute.


Not clear if you’ve downloaded appraisal spreadsheets for each of your wells, per TennisDaze advice. Capitol Appraisal Group ( tax-values many wells across Texas, easy to register on and appraisers will speak to you on the phone. Download spreadsheet for each well, shows their estimate of yearly production for life of well, and discount rate used to present value each year’s production using last years commodity price.

The Midland County holdings I have questions about are appraised by Pritchard & Abbott. I did not know to download the 2023 analysis of RI value, but have downloaded the 2024 analysis.

When my revenue has dropped by 61%, I find it appalling that they are raising the appraisals on 13 of 40 parcels. However the most troubling pertains to 4 parcels that are part of the same unit.

Name 23 revenue Jan-May 24 revenue Forecast 24 revenue

Ger Spry TR2 $228 $77 116

Ger Spry TR3 $393 $132 199

Ger Spry TR2 Dean $0.65 $0.16 17

Ger Spry TR3 Dean 0 0 28

As you can see, I am being taxed on a parcel I have never received revenue on. All 4 parcels have had their appraisal raised though it is obvious that revenue is down.

Should I try to protest this? Should I be sending a certified letter to the producer asking for back revenue on the parcels I am being taxed on with no revenue paid?