Dip in oil and gas prices affecting East Texas county budgets - KTRE.com | Lufkin and Nacogdoches, Texas

Dip in oil and gas prices affecting East Texas county budgets

NACOGDOCHES, TX (KTRE) -

The flat oil and gas activity is reducing royalties for East Texas mineral right holders. It's also affecting county budgets.

Nacogdoches County commissioners say the dip is one of the reasons they're proposing the first tax hike in years. They called in some support to explain the situation.

"You can see what a roller coaster it's been," said Walter Priddy, a geologist with Richard and Abbott.

With charts in hand, Priddy was on the road between Nacogdoches and Shelby Counties Tuesday. The geologist valuates minerals for many East Texas counties, and these days, the message is about the same wherever he goes.

"Gas prices are obviously weaker," Priddy said. "This was $4 range and it's going to be running between 2 to 3 dollars, it looks like, projections right now."

Nacogdoches County Commissioners sought the not-so-promising report to help them justify their proposal to raise taxes and cut services.

"We were able to spend $3.47 million, that's what natural gas generated for our budget," said Jim Elder, a Nacogdoches County Commissioner. "Bottom line, plain English; it's now generating $1.9."

Chief Appraiser Gary Woods keeps the court within the law, reminding commissioners that it's not value, but rather generated tax dollars they must be concerned about.

"No mater what value does, you're limited to an 8 percent growth on previous year revenue," Woods said. However, he added that things aren't all bad, stating, "It's actually been climbing here lately."

Priddy pointed out that companies are reluctantly drilling at some locations.

"A lot of them are having to drill because they're first time leases and didn't want to lose them after paying big lease bonuses," Priddy said.

However, Elder pointed out that it is "still not a rosy picture." He said he doesn't want people to assume that oil and gas prices are going up these days. Priddy agreed, explaining that the trend is not expected to change for two years.

Copyright 2012 KTRE. All rights reserved.

 

 

 

 

 

 

 

 

  • East Texas NewsMore>>

  • Nacogdoches group celebrates Earth Day

    Nacogdoches group celebrates Earth Day

    Sunday, April 22 2018 7:29 PM EDT2018-04-22 23:29:57 GMT
    Photo: KTREPhoto: KTRE

    Across the nation many people celebrated the Earth Day which started 48 years ago after a massive oil spill in California. Fast forward to today, the conversation revolves on conserving water according to organizers with Resilient Nacogdoches where its widely known that East Texas has an abundant resources of natural water. "Children grow up knowing that food, you just buy it, but you can grow it. We need water of course for growing gardens. It's something that we...

    More >>

    Across the nation many people celebrated the Earth Day which started 48 years ago after a massive oil spill in California. Fast forward to today, the conversation revolves on conserving water according to organizers with Resilient Nacogdoches where its widely known that East Texas has an abundant resources of natural water. "Children grow up knowing that food, you just buy it, but you can grow it. We need water of course for growing gardens. It's something that we...

    More >>
  • San Augustine celebrates long-lived community members

    San Augustine celebrates long-lived community members

    Saturday, April 21 2018 7:06 PM EDT2018-04-21 23:06:22 GMT
    Source: KTRE staffSource: KTRE staff
    Source: KTRE staffSource: KTRE staff

    The small, East Texas town of San Augustine hosted a celebration on Saturday for community members who had lived to see more moons than anyone else.   

    More >>

    The small, East Texas town of San Augustine hosted a celebration on Saturday for community members who had lived to see more moons than anyone else.   

    More >>
  • Nacogdoches County girls take down Angelina in KTRE Pineywoods Showdown

    Clean sweep for Nacogdoches in 10th annual KTRE Pineywoods Showdown

    Clean sweep for Nacogdoches in 10th annual KTRE Pineywoods Showdown

    Friday, April 20 2018 9:48 PM EDT2018-04-21 01:48:29 GMT

    The Nacogdoches County girls have snapped a two-game losing streak in the KTRE Pineywoods Showdown following a 54-41 win over Angelina County. 

    More >>

    The Nacogdoches County girls have snapped a two-game losing streak in the KTRE Pineywoods Showdown following a 54-41 win over Angelina County. 

    More >>
Powered by Frankly