Audit: Oil industry owes Eddy County $460,000 in back taxes

CARLSBAD, N.M. (AP) – An audit has discovered that the oil and gas industry owes a southwestern New Mexico county hundreds of thousands of dollars in back taxes.

An incomplete audit of Eddy County’s finances has found more than $460,000 in back taxes owed to the county from oil and gas companies.

Eddy County contracted Total Assessment Solutions Corp. last year to conduct an audit on behalf of the County Assessor’s Office. The audit is looking to identify, map and find the valuation of oil and gas property within the county. The audit was ordered after the assessor’s office raised concerns that oil and gas companies may not have been reporting and paying taxes on all properties.

The audit found 111 omitted drilling rigs and 101 miles of omitted pipeline that hadn’t been claimed. The audit is ongoing.