Oryx Energy Co. v. County of Kern

Opinion

ARDAIZ, J.

Oryx Energy Company (hereinafter Oryx) was the lessee and the United States of America was the lessor of three mineral leases during the tax years 1983-1984, 1985-1986 and 1986-1987. The leases granted to Oryx the right to take oil and gas from the federally owned land, and required Oryx to pay to the United States government a rent or “royalty” of approximately 13 percent of the value of the gross production obtained from each leasehold. The Oryx leaseholds were subject to a property tax levied by the County of Kern (hereinafter the County). The County would assess the value…