Wyoming Supreme Court affirms Fremont County Board of Equalization’s decision on Contango property valuation

(Lander, WY) – The Wyoming Supreme Court issued a ruling this month affirming the Fremont County Board of Equalization’s decision to uphold Assessor Tara Berg’s valuation of a property Contango Resources purchased in 2021.

The property, which Contango acquired for $67 million through a closed bidding process, is located in both Fremont County and Sweetwater County and includes the Lost Cabin Gas Plant, the Lost Creek Gathering Lines, eight wells that feed directly to the plant, oil and gas equipment associated with wells that don’t feed directly into the plant, residential improvements, commercial land and improvements, and an amine plant, according to the Supreme Court ruling.

When she valued the property, Berg divided it into two portions – one that was appraised by an outside expert, and another that was appraised by Berg and her staff, the Court ruling states.

The outside expert valued his portion of the property at $160.7 million, resulting in an assessment of $144.9 million after relevant exemptions for emissions and fire control were applied, the Court said, while Berg and her staff valued their portion of the property at $45.3 million, resulting in a total valuation of about $190 million.

Contango appealed that assessment, arguing that Berg and the outside expert should have relied more on the $67 million purchase price for the property and other information contained in the sale agreement with ConocoPhillips, and that “the fact that the assessed value was so much higher than purchase price demonstrated error in the assessment,” among other claims, according to the Court.

The Fremont County Board of Equalization rejected those claims, however, concluding that “the Assessor was not required to accept and apply the purchase price” as part of her valuation and rejecting the argument “that the size of the difference between the Assessor’s valuation and Contango’s valuation evidenced error,” the Court said.

The State Board of Equalization and the District Court of Fremont County both affirmed the Fremont County Board of Equalization’s decision, so Contango took its appeal to the Wyoming Supreme Court, which this month said “we likewise affirm.”

Berg called it a “precedent-setting case” during a Fremont County Commission meeting this month.

“That was a big case,” she said. “We fought (for) years and won.”

Commissioner Mike Jones agreed that “it was an amazing case,” noting that the proceedings cost Fremont County tens of thousands of dollars in legal fees. 

“That’s been a long journey,” he said. “(But) our ruling has been upheld, so that’s a good thing.”