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 and all other equipment and materials used in operating 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. Oil and gas rendition forms can be found here: Oil and Gas Rendition Forms

A list of the current royalty owners, their decimal interest and their address (aka Division Orders) are to be provided by the operator and is a requirement for filing the tax rendition per the oil and gas guide provided by the State of Kansas, Property Valuation Division. 

Property subject to taxation can be appraised and assessed for the year it was discovered and the prior two years. 

​Penalties Apply to Oil and Gas Leases Filed Late

Filed April 2nd through May 1st 5%
Filed May 2nd through June 1st 10%
Filed June 2nd through July 1st 15% Filed July 2nd through August 1st 20% Filed after August 1st through April 1st of the following year 25% Failure to file within one year / Omitted or unreported for more that one year 50%

How Oil and Gas 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 done 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.