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Board of Equalization hears Cactus Drilling appeal over rig valuations; one account set by agreement at $9.66 million
Summary
At a July 22 Board of Equalization hearing, the taxpayer representing Cactus Drilling argued seven drilling rigs were cannibalized and should be valued at scrap levels; the board noted the taxpayer’s documentation was provided late, left one appeal open for written decision and, by agreement of the parties, set a separate account’s value at $9,661,006.
The Oklahoma County Board of Equalization heard an appeal from representatives of Cactus Drilling on July 22 about personal-property valuations for oilfield equipment.
Eleanor Thompson, chair of the Board of Equalization, introduced BOE case number P3124528 and asked the taxpayer to state its case. The taxpayer’s representative said the assessor’s package values the assorted property collectively at roughly $12.4 million, while the taxpayer contended the drilling rigs alone should be valued much lower because they are cannibalized and largely unmarketable. The taxpayer told the board it had valued each of seven rigs at about $40,000 using a scrap-per-pound approach and included roughly $2.2 million in parts inventory; the representative described providing photos and a packet to the county clerk and assessor the day before the hearing.
The board pressed the taxpayer for documentary detail and timeliness. Agency staff (task/assessor) explained that task had set rigs-only market value at $11,884,008.64 and described limited communication on this account during the informal stage; board members emphasized that the board acts as an appellate body and that evidentiary exchanges are expected at the informal stage so the assessor/task have an opportunity to evaluate new materials.
Taxpayer representatives argued the rigs are obsolete DC rigs, missing parts, and effectively scrap: "They're sitting there... just scrap," the representative said, adding that comparable scrappage sales in other yards yielded $0.07–$0.11 per pound, producing roughly $30,000–$50,000 per rig in other examples. Assessors and task staff countered that prior appeals and task valuations have produced larger figures in past years and that the county needs time to consider documentation supplied the day before the hearing.
The board did not render a decision on BOE P3124528 during the hearing; members said they would consider the record and issue a written decision by the end of the next week. For a related account (BOE 204 / account PAsInPeter3061673), the taxpayer withdrew part of its objection; by agreement of the parties the board set BOE 204’s fair market value at $9,661,006, and the motion was approved on a voice vote.
The BOE reminded the taxpayer that informal submissions and earlier communication with task/assessor staff are important to allow full consideration, and the hearing record closed with the board scheduling decision-day follow up.
