California Minerals, L.P. v. County of Kern

Opinion

LEVY, J.

This appeal concerns the valuation of oil and gas mineral property interests for the purpose of determining ad valorem taxes. Appellant, California Minerals, L.P., a Texas limited partnership (California Minerals), challenges the enrolled base year value of mineral rights it purchased in nonproducing property. This interest was assessed at the purchase price allocated to that acreage. According to California Minerals, this value should be zero because “proved” oil and gas reserves, as defined by the applicable State Board of Equalization (SBE) rule, have not yet been…