Unpaid Property Taxes on Oil and Gas Leases

Well site owners (petroleum companies) that lease a portion of a property from a landowner will receive the annual Rural Property Tax Notice and a monthly statement of account (SOFA) when the taxes remain unpaid.  The Rural Tax Notice and SOFA for the landowner is suppressed because the well site company is responsible for paying the property tax.  The suppression of the Rural Property Tax Notice and SOFA is handled by the Rural Property Tax Office.  The bulk of these properties fall within Jurisdiction 759 & 760. 

Each year on January 5th a system generated letter is created and mailed out to the landowner (sample attached).  This January there are 286 letters that are being mailed. The decision was made to not add the amount outstanding on the letter.  

It is important to remember that any collection action to recover the tax arrears would be against the oil and gas company not the land owner.

Concerned landowners can also be directed to the Farmer’s Advocacy Office website.  Farmer’s Advocacy This is an excellent resource for information and news updates. The Farmers’ Advocacy Office has the primary goal of equipping land owners to deal in their own best interests in the negotiation of surface leases and rights of way associated with the oil and gas industry.

Sample Information Letter Regarding Oil and Gas Property Taxes

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