Property value drop in oil fields continue to lower the tax base in San Juan County

by David Boyle
News Director
Members of the San Juan County Commission heard a sobering report on a centrally assessed property, discussed needs in La Sal and signed a support letter to allow more roads on Forest Service lands at their latest meeting.
Members of the San Juan County Commission heard from representatives with the Utah State Tax Commission at the September 15 meeting. Members of the commission shared how a tax valuation drop of $40 million will impact the county.
Officials said that Elk Petroleum saw its tax valuation fall by 35 percent, from $113 million in 2025 to $73 million in 2026. The decrease is driven by the formal reporting of a joint ownership stake held by the Navajo Nation Oil and Gas Company.
The state tax commission said that ownership is not new but has not been reported to the tax commission until this year. The commission also added they audited the report to verify the ownership.
Because the property is on tribal land, the joint ownership triggered statutory tax exemptions and required state assessors to switch from an income-based valuation method to a cost-approach valuation to best evaluate the property.
In addition to the changed reporting in ownership, a 16 percent drop in average oil prices during fiscal year 2025 also impacted the value of Elk Petroleum.
Despite that, state analysts said valuations for the property under the cost approach should remain relatively stable moving forward.
The commission also shared that centrally assessed properties account for about 23 percent of the county total tax base, with natural resource properties making up 58 percent of those centrally assessed properties. Utilities and transportation infrastructure make up the rest of centrally assessed properties.
In other centrally assessed news, the county got an update on ongoing litigation with Mid America Pipeline, which has appealed its valuation for every year since 2016 and forced the county to issue tax refunds following court and settlement procedures. The county learned that the company had already filed a formal appeal against its 2026 valuation.
Officials did offer a hopeful outlook for centrally assessed properties, noting the investment in uranium development in the area including at the White Mesa Mill.
Members of the commission also held a public hearing regarding a feasibility study for a centralized culinary water system in La Sal.
The project proposes constructing central wells and storage tanks to supply households with water in La Sal that currently rely on private or shared wells.
Members of the public shared thoughts on the study with proponents pointing towards the need for capacity as well as fire safety concerns.
Resident Paula Garcia said after over 40 years on her well, drought conditions and a proliferation of new wells in the community has forced her to restrict lawn and livestock watering.
TC Garcia added his support for installing fire hydrants to protect homes and businesses and urged officials to keep connection fees affordable and to protect existing private water rights.
Other land owners shared some skepticism. Steven Shultz shared concern that municipal wells at the base of South Mountain could draw down the aquifer ahead of existing private wells, as well as concerns with plumbing costs for owners to isolate non-potable well lines from culinary connections.
Schultz requested a US Geologic Survey groundwater study to evaluate the risk of drawing from contaminated plumes from mining sites.
La Sal resident Kelly Green offered an alternative that the county look at Coyote Springs as a potential source for water in La Sal.
Members of the commission agreed to post the full study online and evaluate the possibility of a dedicated community meeting in La Sal.
In other La Sal news, during public comment TC Garcia encouraged the county to advocate for the community as the San Juan School District has initiated a study to potentially close the La Sal Elementary School that serves Kindergarten through 2nd grade students.
Green also requested the county upgrade safety features in La Sal, suggesting guardrails and flashing deer crossing lights on Highway 46 near mile markers 2 and 3.
Members of the commission also approved an agreement for the road department to rent equipment to crush gravel in-house. The rental will allow the department to see if there are cost saving methods to having staff crush gravel with equipment in-house rather than going through contractors. The equipment will also be shared with Grand County during the rental.
Members of the commission also approved the 2026 transfer station contract with the City of Blanding. A county landfill employee will operate the city-owned transfer station on Saturdays to allow trash disposal access for local residents. The agreement was described by staff as a win-win.
Members of the commission approved a comment letter supporting a proposal to rescind the US Forest Service 2001 Roadless Rule.
The rule was implemented to preserve natural qualities of areas with few or no roads and designate them as roadless areas.
County staff said that about 30 percent of forest lands in San Juan have roadless designation. Those opposed to the rule claim the policy prohibits forest management work, including increased fire fuel hazards. Members of the commission approved a letter supporting rescinding the rule.
Members of the commission also reviewed fee scheduled updates, including a proposal upgrade in standard document recording fees from $40 to $45, as well as document access fee adjustments from 50 cents to $1 per page.
Members of the commission voted to postpone action to allow further review on proposed fee schedule updates ahead of a likely vote in early October.
Members of the commission also heard a presentation from the Southeastern Regional Development Agency (SERDA) on the HEAT energy assistance and home weatherization program.
Weatherization projects have been completed at three homes in Westwater and two in Monument Valley in the past year with 13 additional energy audits currently underway.
Additional funding should allow the program to provide supplemental HEAT benefit payments starting mid-September.
County commissioners shared that in-person outreach at Navajo chapter houses, with language translation would increase the success of the program.