CHARLESTON — The Intermediate Court of Appeals remanded a case back to state court, saying EQT may have the standing to pursue its appeal challenging the 2021 tax assessment of its wells in the county.
EQT Production Company's appeal involves a dispute over the property tax appraisal of its 27 natural gas wells in Marshall County for the tax year 2021, according to a Dec. 15 memorandum decision in the Intermediate Court of Appeals of West Virginia.
The West Virginia Department of Revenue, State Tax Department, and the Marshall County Assessor assessed the wells, acquired from Chevron in 2020, at $221,378,791. EQT contested the valuation, alleging that Chevron's incorrect reporting of gross receipts on its 2021 tax returns led to the overvaluation.
Despite EQT's appeal to the Board of Assessment Appeals, the appraisal and assessment were upheld, according to the decision.
EQT subsequently appealed the BAA's decision to Marshall Circuit Court, where the Tax Department and BAA moved to dismiss the case, arguing that EQT lacked standing.
The circuit court granted the motion to dismiss on Nov. 15, 2022, stating that EQT, as a third party, could not challenge taxes assessed to Chevron, the original owner. The court also concluded that West Virginia Code § 11-3-25 did not confer standing upon EQT, as it was not an "aggrieved party" under the statute.
In its appeal, EQT argues that it has standing to challenge the 2021 tax assessment because it owned the wells during that period, was responsible for the property taxes and paid them. EQT also contends that the circuit court misinterpreted Tug Valley, a precedent, by limiting its holding to non-property owner county residents challenging under-assessed property.
The appellate court disagreed with the circuit court's conclusion. It writes that EQT, having appeared before the BAA and contested the assessment, qualifies as an "aggrieved party" under West Virginia Code § 11-3-25.
The court emphasizes the statute's plain language, stating that "any person" claiming to be aggrieved has the right to appeal if they have contested the valuation before the BAA. The court notes that Tug Valley does not restrict its holding to individuals with characteristics similar to the plaintiffs in that case.
"We find, therefore, that the circuit court below erred in its application of the plain language of West Virginia Code § 11-3-25 and was too narrow in its interpretation of Tug Valley when it found an exclusion that prevented EQT, as an aggrieved party that had appeared and contested a property tax valuation before the Marshall County BAA, from exercising its right to appeal in the Circuit Court of Marshall County," the decision states. "Accordingly, we reverse the November 15, 2022, order of the circuit court and remand for further proceedings consistent with this decision."
The court reversed the Nov. 15, 2022, order and remanded the case for further proceedings in line with its decision. Chief Judge Daniel W. Greear and Judges Thomas E. Scarr and Charles O. Lorensen all concurred in the decision.
Attorneys for the parties declined to comment on the case.
Intermediate Court of Appeals case number: 22-ICA-305
