Capital Appraisal Group tells Dimmit County a post-certification supplement added $223 million to mineral valuation

Capital Appraisal Group told the Dimmit County Commissioners Court that a post-certification supplemental process added about $223 million to the county's certified mineral appraisal roll for 2024.

Consultant Leo Wideman, introduced at the meeting as a petroleum engineer with decades of experience working in oil-and-gas valuation, described the firm's approach: collect production data from the Railroad Commission and sales data from the Texas Comptroller, forecast production, generate cash-flow models and discount to present value. He said the company issues a 100% value appraisal and then apportions ownership shares using operator ownership data before the tax office applies rates and issues bills.

Why it matters: Wideman told the court that late reporting by operators and the lag in state agency publication of production and sales data often creates the need for mid-year supplemental notices. Because those data arrive after certification, an appraisal firm that pursues supplements can add value to an already-certified appraisal roll. In this case, Wideman said those supplements raised the county's mineral valuation from about $7.27 billion to about $7.50 billion.

Direct detail from meeting: "Many appraisal firms don't do this," Wideman said, explaining Capital Appraisal Group's practice of perimeter sweeps, precise cash-flow forecasting and supplemental notices to capture value that should be included as of the appraisal date. He also invited the commissioners to a roadshow forecast presentation on April 28 at 1:30 p.m.

Process and constraints: Wideman and staff described timing constraints imposed by the Texas Property Code and the way Railroad Commission and Comptroller data become public several months after production. He said Marshalling supplemental data typically occurs in the third or fourth quarter to allow statutory protest windows and certification procedures to proceed earlier in the year.

Outcome: The presentation was informational; commissioners asked follow-up questions about process and whether the firm could be placed on a future agenda. Court minutes record the consultant offered to follow up and accept questions after the presentation.

Ending: Capital Appraisal Group said it pursues supplements to "maximize value for our clients," and the court accepted the informational report and was offered the April 28 forecast for additional context.