A Basalt-based oil and gas company is suing another gas field operator, alleging that it is owed more than $50,000 in taxes stemming from a land sale in Kansas.
Crystal River Oil and Gas contends that Impact Global Resources of Colorado Springs unfairly collected a tax refund on the land deal in Kingman County, Kan.
Crystal River Oil and Gas, referred to in the lawsuit as CROG, also has an office in California. It operates more than 300 oil and gas wells in six states, according to its website.
In February 2011, CROG and three other companies entered into a $2 million purchase and sale agreement to sell oil and gas leases on property in Kingman County, according to the lawsuit. Included in the deal were all “producing, nonproducing, shut-in and abandoned oil and gas wells, injection wells, water wells and salt-water disposal wells ...,” says the agreement, which is in an exhibit in the lawsuit.
Filed Tuesday in Pitkin County District Court, the lawsuit says the agreement had a closing date of May 1, 2011. Prior to that date, CROG was responsible for taxes on the leases, and “Impact was liable for taxes after that date,” wrote the plaintiff’s attorney, John Tanner of Denver.
“Prior to closing, CROG paid all taxes necessary to the subject leases to avoid tax seizure by the state of Kansas,” the lawsuit says. “After closing, a retroactive adjustment was done to the taxes due, resulting in an overpayment by CROG of $54,849.07.”
By then, however, the title to the property had been transferred to Impact, and Kingman County officials “insisted on applying the refund as a credit to future tax bills regarding the property rather than refunding the overpayment to CROG,” Tanner wrote.
Impact has allegedly refused to provide the refund. A message left for the president of the company, which also has an office in Scottsdale, Ariz., was not returned Tuesday.
Among CROG’s claims are breach of contract and unjust enrichment.
Impact made promises to CROG that “must be enforced to prevent injustice,” the lawsuit says.