Oil & Gas Appraisals

For the purpose of valuation and taxation, all oil and gas leases and all oil and gas wells, producing or capable of producing oil and gas in paying quantities, together with all casing, tubing, or other material therein, and all other equipment and material, used in operating the oil and gas wells are hereby declared to be personal property and shall be assessed and taxed as such (K.S.A. 79-329).

Listing Requirements
Operators of oil leases and gas leases are required to file rendition forms stating the amount of production, the number of wells, and the equipment located on each lease by April 1 of each year.

How Leases are Appraised
The county appraiser must use the oil and gas guide prescribed by the director of property valuation in establishing market value appraisals for each oil and gas lease. Oil and gas appraisals are made annually on the basis of reserves of product. Reserves are estimated from the reported production adjusted by the percentage of the decline in production over time.

Market Value

All producing and non-producing well equipment and tanks on each lease is appraised at market value using the prescribed guide. Each drilling rig and pulling unit is appraised using the prescribed guide.

Reserves
Oil and gas appraisals are made annually on the basis of reserves of product. Reserves are estimated from the reported production adjusted by the percentage of the decline in production over time.