Eastland’s 11th Court of Appeals granted a writ of mandamus in three lawsuits involving four taxing entities, Kinder Morgan Production Company and the Scurry County Appraisal District (SCAD).
In doing so, the court instructed District Judge Ernie B. Armstrong to vacate a Jan. 10 order that consolidated two of the three lawsuits for the purpose of discovery.
Armstrong had consolidated the four taxing entities’ lawsuit against Kinder Morgan involving mineral valuations between 2013 and 2018 and Kinder Morgan’s lawsuit against SCAD over 2019 mineral valuations.
Armstrong vacated the order for consolidation on Tuesday.
The four taxing entities are Scurry County, Snyder ISD, Scurry County Junior College District, dba Western Texas College, and Scurry County Hospital District, dba Cogdell Memorial Hospital.
They are represented by attorney D. Brent Lemon, who with U.S. Consults, LLC, will receive 40 percent of any settlement or judgment in the case. The taxing entities in 2018, sought to have Kinder Morgan’s mineral values re-appraised, a request SCAD’s Appraisal Review Board (ARB) denied.
The taxing entities then filed a lawsuit in 132nd District Court in an effort to get a ruling that would order the re-appraisals.
Kinder Morgan asked Armstrong to dismiss the case, but he ruled the company had filed its request too late. The 11th Court of Appeals upheld Armstrong’s ruling, which the company appealed to the Texas Supreme Court.
If Kinder Morgan is successful in its effort to have the lawsuit dismissed under the Texas Citizens Participation Act, the taxing entities could be required to pay the company’s legal fees related the lawsuit.
Kinder Morgan appealed its mineral valuations this year, which were upheld by the ARB, and has thus far withheld a portion of its ad valorem taxes payable until the case can be heard, which is expected to be this summer.
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