Show I Oil Production May Offset Metal Decline Rapidly rising oil production In Utah may go a long way in offsetting the anticipated drop In metal mining assessments according according ac ac- ac cording to the Utah Foundation The Foundation earlier this week predicted a n drop of ot 50 million mUllan in net proceeds nine assessments during 1959 with an additional decline In 1960 1000 Foundation analysts point ont that the recent completion of ot an anoil anoil oil pipe line from Southeastern Utah to Southern California has permitted oil production in Utah to Jump to five times the 1957 level During the first three months of this year oil production production tion totaled 14 million barrels or about barrels per month Preliminary figures show oil production In April equal to 11 million barrels with May production production pro pro- production climbing above the 21 million barrel mark Oil production production pro pro- production In Utah during 1957 only about barrels barrels bar bar- per month The research organization observes observes observes ob ob- ob- ob serves that present trends indicate indicate in in- that 1958 oil production In Utah will total 22 20 million barrels Oil lands in Utah are arc assessed on the basis of oil produced during the preceding year Thus the big Jump in 1958 production will be reflected in ina a corresponding increased in property property pro pro- property perty tax assessment for next year Foundation officials estimate that total oil and gas assessments assessments assess assess- ments next year may may exceed 40 million Such assessments this year to to million while 1957 oil and gasI gas assessments were equal to 64 million The Foundation analysis points out that this rise in oil and gas gal assessments together with expected expected ex ex- increase In its other assessment assessment assess assess- ment categories might well completely offset the anticipated drop in metal mines taxable values for next year They warn I however that the Usual over all e a In the total property tax base baso which have averaged H 54 n during the past five years yean probably will win not be realized in 1959 and 1960 1000 These have been important factors in financing Utah's public school program offsetting in part the added costs of increasing in increasing In in- creasing enrollments Another problem noted by the Foundation is the geographic shift shirt in the property tax assess assess- ments Most of the big Increases In oil assessments will occur In San Juan County and the major Impact of of he he expected reduction in mining assessments will fall fallIn fallIn fallIn In Salt Lake County and the Jordan School District This decline decline de de- cline In the assessment base will create additional problems of local finance within with with- in Salt Lake County |