Taxes on more than what I own in Midland TX

Accounting and Taxes
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Hello All, I have been looking at my taxes in Midland county on royalties that appear to include areas that I do not own, they tax me for 360 acres or all of S/2. In that section I own the South 228.57 acres minus 40 acres in a square on the SE/4 of the S/2, or basically 188.57 acres. This only includes 4 wells at this time. Two of which pass through the 40 acres, so only a very short distance of laterals are in my area there (about 1/4 of laterals in that section). I am being taxed on the entire S/2 which includes 12 more additional wells that go North from my line of what I own but not within the property constraints described, as well as the full laterals that extend into the 40 acres on the SE/4. Midland County Tax office is of no use on this, so I guess I need to go through Austin about this? Am I wrong about how this should be taxed maybe? If this is happening to me and others then they are double dipping so to speak? Not sure how this goes but it appears that I am being taxed on all of wells in that lower S/2. TIA, MK

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Possibly your minerals are pooled? If pooled , Taxes would be based on the decimal interest in the well, as on the royalty check. Appraisal notices are mailed out about May annually. If there is a mistake, an ARB protest should be submitted by the deadline.

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Thanks J, I know it is not pooled, I am just wondering why it is the way it is? I don’t even know why I did not notice it until now. LOL mk

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Minerals are taxed based on the wells in which you own an interest and based on your royalty decimal (DOI). It is not based on actual acreage - that is only for surface taxes. Look at the referenced RRC Lease number(s) and go to RRC Wellbore Query to enter the lease number to see what wells are listed under that lease number. A 5-digit oil lease number may include multiple wells. A 6-digit gas lease number will only be one well. Compare to the appraisal notice which you received earlier. That Appraisal Notice will also list the appraisal company (eg CAGI or P&A) and a code to log into that system for details. This is between you and Midland County Appraisal District which set the values and your time to protest was limited to 30 days. The Midland County Tax office only collects the taxes owed and does not handle protests. These valuations are not handled by RRC or other Austin agency.

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Thanks TD as usual you have a way with words. :slight_smile: MK

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