MOUNTAIN VIEW COUNTY - County council is scheduled to consider writing-off outstanding taxes totalling nearly $40,000 owed by five oil and gas companies at Wednesday's council meeting, according to the council agenda package.
“The five companies owning the nine listed property tax rolls have been insolvent and in receivership,” said chief administrative officer Jeff Holmes.
“The oilfield properties have been offered for sale for a number of years and remain unsold. Decommissioning and remediation is yet to be completed by the Orphan Well Association for the accounts still receiving annual tax levies.
“The outstanding levies are all of the accounts back to at least 2018 and are all deemed to be uncollectible.”
The five companies involved are Houston Oil and Gas Ltd., Manitok Energy Inc., Scollard Energy Ltd., Trident Exploration Corp., and Trident Limited Partnership.
As far as budget implications, he said, “The nine listed property tax rolls have been recognized in allowance for bad debt. By writing off these accounts, with a December 31, 2023 effective date, it would be recognized as a bad debt expense in the 2023 fiscal year.
The education and designated industrial property requisition portions will be included on the current 2023 tax year provincial education requisition (PERC) and designated industrial requisition credit (DIRC).
“The allowance for doubtful accounts and taxes receivable would be reduced by the same amount, $39,150.64.”
He also noted that the PERC application would “reduce the amount repayable on a future quarterly education requisition instalment, due to collection of past due accounts in the 2023 tax year, and the DIRC application would reduce the repayable balance of DIRC funds received and subsequently collected in 2023.”
The Jan. 10 council meeting is scheduled to be held in person in council chambers and online.
