Tenneco West, Inc. v. County of Kern

Plaintiff oil company appeals from a judgment for defendant county and intervener assessor entered on plaintiff’s complaint to recover ad valorem property taxes on certain Kern County parcels commonly known as the “Ten Section Oil and Gas field” (hereinafter Ten Section). This action followed a decision and order of the Kern County Assessment Appeals Board determining the application of Tenneco West, Inc. for reduction of assessment on gas storage rights in the property.

Facts

Discussion

Introduction

I. Did the Assessment Appeals Board Erroneously Determine the Taxable Value of the Subject Properties for the 1978-1979 Tax Year?

Plaintiff Tenneco contends the board failed to follow prescribed rules of law in determining the taxable value of the subject properties for tax year 1978-1979.

Tenneco specifically argues the Kern County Assessor could not reappraise the Ten Section to include a value for gas storage rights for tax year 1978-1979 under Proposition 13.

“The real property was taxed on the secured roll. Its assessment, valuation and taxation for fiscal year starting July 1, 1978 was governed by the provisions of Prop. 13 and implementing statutes.

“The…