Rewards of Merit: Property Tax

Differentiated Approach to Achieve Fair Valuation


A large oil and gas operator had significant Louisiana holdings that were overvalued by the state. However, local parishes were reluctant to allow the appropriate reductions.

Results for client


Assessment Reduction


Annual Tax Savings While Avoiding Litigation


  • Client’s assets were assessed unrealistically under state methodology, which, ignores well economics.
  • Client’s previous consultant lacked expertise and relationships critical to negotiating obsolescence reductions for underperforming assets.
  • Previous consultant initiated long and costly litigation against parishes to secure reductions.

Merit Action Plan:

  • Maintain strong working relationships with parishes throughout Louisiana.

  • Through our standard tax preparation process, Merit identified wells that clearly qualified for obsolescence reductions based on cash flow.

  • Worked constructively with assessors, providing ample supporting documentation.

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