Rewards of Merit: Property Tax

Achieving Cash Tax Savings for a Multi-State Producer


A regional independent oil and gas producer with multi-state assets engaged Merit to reduce liabilities and find efficiencies in its property tax function.

Results for client


Annual Cash Tax Savings


Reduction in Property Tax Liability
for Mineral Leases


  • Client sought to reduce tax liability while also streamlining processes, taking into account the varying appraisal methods used across states and client’s well population.

  • Proposed well appraisals were  inflated as taxing jurisdictions factored in production increases gained through artificial lift without recognizing associated expenses.

  • Client needed a strategy to address tax liability implications of planned acquisition that would double the company’s size.

Merit Action Plan:

  • Negotiated directly with taxing jurisdictions following a thorough review of appraisals.
  • Secured favorable appraisal adjustments for client’s wells based on substantial artificial lift expenditures.
  • Applied a holistic approach encompassing expenses, burdens and post-production capital expenditures.

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