Slumping oil prices aren’t just hurting oil and gas companies. Many landowners see the effects when they visit their mailbox,reports The Texas Tribune.The energy downturn is eating into the monthly checks royalty owners receive for oil production on their property. However, while it’s little comfort, the slowing income can also mean their tax bills will plummet.
That’s because in a bear market, the minerals on the land lose value. But some royalty owners are wondering whether many local governments are still overestimating values. One firm in particular, Fort Worth-based Pritchard and Abbott, has raised red flags. The company contracts with roughly half of Texas counties to appraise property, which includes land and minerals.
The Texas Royalty Council, an advocacy group, is now encouraging royalty owners in certain counties to contact the firm and protest their appraisals if they seem too high.