LOGA Industry Report - Winter 2009 - (Page 28) Taxpayers Voices Make a Difference by Don Frederickson, Chesapeake Energy Corporation The three LTC hearings typically begin in July, and the first two hearings are normally very long, usually six to eight hours. The third is the adoption hearing when the LTC makes its rulings. As the hearings began, industry tax representatives and the assessors made presentations. Both were received in a professional manner by the new LTC. However, when the Monroe Field operators spoke, the LTC was immediately engaged. Real taxpayers had personally brought an injustice before them. From the outset it was obvious they were going to get relief in the 2009 LTC rules. Those of us who have presented before the LTC know that our presence as tax professionals or legal experts is appreciated and necessary. We are the ever-vigilant watchers of the rules, and we try to favorably impact future assessments. This year, as in most years past, we were able to hold off rule changes that would negatively impact industry. The actual taxpayers who came were able to do more for their issue, however, than all of the professionals combined. For 2009, there is now a credit in place that will have a positive impact on the assessments for very low producing wells across the state. That credit was possible through everyone’s hard work, but specifically because a group of taxpayers came to the LTC and stated their case eloquently. Committee members and LOGA leadership work diligently on ad valorem issues each year. And taxpayers can make a difference as a voice that is heard in Baton Rouge. If there is an issue (ad valorem or otherwise) that impacts the industry, get involved. There is always room at the table for one more. Congratulations to the operators from the Monroe area! ● For many people, summer brings thoughts of vacations and a bright, sunny time of the year. For those of us in the ad valorem tax world in Louisiana, it means another round of Louisiana Tax Commission Hearings and very heated debates. When it is your 18th set of summer hearings in a row, you also know it means a lot of work has to be done. This year’s LTC hearings preparation started out as most. Industry began having planning meetings in the spring. The assessors hired their favorite consultants from Texas and their favorite attorney from Belle Chase. The LTC staff began setting hearing dates. The difference this year is that four out of the five members on the LTC panel are new and have never heard either side debate the issues. Just prior to the first hearing, phone calls began to arrive at LOGA and the LTC. Besides the normal issues that arise each year, a specific group of taxpayers pointed out the problems they were having in their area. The Monroe Field operators had 2008 assessments that were 50 percent to 300 percent higher than in 2007. Operators had tried to work these issues out with the local assessors, but were told only the LTC could help them. After conversations with ad valorem committee members and LOGA leadership, the Monroe Field operators agreed to come to Baton Rouge and present their issue to the LTC. 28 | LOGA INDUSTRY REPORT | WINTER 2009
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