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Fayetteville Express Pipeline Says Tax Assessment Too High

1 min read

Fayetteville Express Pipeline LLC has filed a challenge to the Arkansas Public Service Commission’s 2014 tax assessment of its pipeline.

The company argues in a petition filed late last month that the assessment — totaling nearly $150 million for its real and personal property — did not take into consideration the deteriorating market conditions in the Fayetteville Shale area.

Fayetteville Express Pipeline is a joint venture between Kinder Morgan of Houston and Energy Transfer Partners LP of Dallas.

Chris P. Corbitt, a Little Rock attorney for the company, wrote that the pipeline, which went into service in 2010, was “significantly underutilized” because the “market conditions for natural gas … have significantly declined.”

Corbitt asked that the order affirming the assessment be reversed and that the case be remanded to the PSC for a new assessment.

John Bethel, the executive director of the commission, said the PSC would be responding to the complaint in court, but he noted that the commission had already reviewed the tax division’s work.

“Ultimately the commission determined that the evidence in the case didn’t justify a lower valuation and upheld the tax division’s valuation of Fayetteville Express,” Bethel said.

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