{"id":216,"date":"2026-05-30T04:13:56","date_gmt":"2026-05-30T04:13:56","guid":{"rendered":"https:\/\/movingtoalaskausa.com\/?p=216"},"modified":"2026-05-30T04:13:56","modified_gmt":"2026-05-30T04:13:56","slug":"in-setback-for-oil-companies-tax-board-raises-trans-alaska-pipeline-value-by-3-billion","status":"publish","type":"post","link":"https:\/\/movingtoalaskausa.com\/?p=216","title":{"rendered":"In setback for oil companies, tax board raises trans-Alaska pipeline value by $3 billion"},"content":{"rendered":"
\n

Alaska and three of its municipalities could be in line for an extra $60 million in oil industry tax revenue after a new ruling in a long-running feud over the value of the trans-Alaska pipeline system.<\/p>\n

Read more Alaska Legislature votes to improve preparedness and response for stroke, heart attack emergencies<\/a><\/p>\n

A state appeals board this week determined<\/u> the property tax value of the enormous 50-year-old pipeline system, which moves crude 800 miles from the North Slope\u2019s oil fields to the port town of Valdez, to be $13 billion.<\/p>\n

That\u2019s some $3 billion more than an initial 2026 assessment from Gov. Mike Dunleavy\u2019s administration \u2014 meaning the pipeline\u2019s owners would owe $60 million more under the state\u2019s 2% property tax regime.<\/p>\n

Far more money could be at stake if, as anticipated, the oil companies that own the pipeline and pay the taxes \u2014\u00a0or the municipalities that collect a share of the taxes \u2014 appeal the decision in state court.<\/p>\n

A spokesperson for Alyeska Pipeline Service Co., which operates the pipeline system, said the decision is under review by the owners. Alyeska is owned by affiliates of three of Alaska\u2019s major oil producers: Hilcorp, ConocoPhillips and ExxonMobil.<\/p>\n

Robin Brena, an Alaska attorney who has long represented the municipalities in pipeline property tax matters, said he expects both parties to appeal the decision.<\/p>\n

The dispute dates back decades. Alyeska and the municipalities spent years in court feuding over yearly assessments before reaching a settlement in 2016 that set the pipeline\u2019s value at $8 billion \u2014 translating into an annual property tax bill of $160 million.<\/p>\n

That money flows to both the state and municipalities; for Valdez, the taxes have represented more than half of the city\u2019s regular recurring revenue. The North Slope and Fairbanks North Star boroughs also receive tens of millions of dollars.<\/p>\n

After the settlement expired last year, the state Department of Revenue initially set the pipeline system\u2019s updated value at $10.3 billion.<\/p>\n

Both the oil companies and municipalities appealed to the State Assessment Review Board, whose five members are appointed by the governor.<\/p>\n

Read more Algal toxins emerge as a new concern in Alaska\u2019s Northern Bering Sea<\/a><\/p>\n

The owners assert that the pipeline system\u2019s value has been declining and is now $2.8 billion \u2014 equating to some $56 million in property tax payments.<\/p>\n

The municipalities, meanwhile, say the system is depreciating at a much slower rate and still has decades of life left in it, buoyed by new oil development on the North Slope. They estimate that its value is closer to $20 billion, which would translate to some $400 million in property tax revenue.<\/p>\n

Brena, the lawyer representing the municipalities, said he\u2019s skeptical of the oil companies\u2019 approach.<\/p>\n

\u201cTo me, the owners are advocating a position which has consistently been about 10% percent of the true value of TAPS,\u201d he said, using the acronym for the pipeline system. \u201cIt looks like their motives are to lower their taxes rather than to get the assessment correct.\u201d<\/p>\n

The Department of Revenue\u2019s 2026 assessment was based on a court-approved method of estimating the cost of replacing the pipeline, then accounting for depreciation.<\/p>\n

The state review board concluded that the revenue department used an improper method to calculate depreciation \u2014 focusing on past North Slope production rather than on proven oil reserves and expected future production.<\/p>\n

The municipalities and oil companies have 30 days from May 22 to appeal the board\u2019s decision to Alaska superior court. Similar pipeline tax cases before the 2016 settlement were appealed all the way to the Alaska Supreme Court.<\/p>\n

Northern Journal contributor Max Graham can be reached at [email\u00a0protected]. He\u2019s interested in any and all mining related stories, as well as introductory meetings with people in and around the industry.<\/span><\/i><\/p>\n

This <\/span><\/i>article<\/span><\/i> was originally published in Northern Journal, a newsletter from Nathaniel Herz. Subscribe at this <\/span><\/i>link<\/span><\/i>.<\/span><\/i><\/p>\n

Read more Appeals court says Alaska has the right to make ConocoPhillips oil well data public<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Alaska and three of its municipalities could be in line for an extra $60 million in oil industry tax revenue after a new ruling in a long-running feud over the value of the trans-Alaska pipeline system.<\/p>\n","protected":false},"author":1,"featured_media":215,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-216","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interesting"],"yoast_head":"\nIn setback for oil companies, tax board raises trans-Alaska pipeline value by $3 billion - Moving to Alaska<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/movingtoalaskausa.com\/?p=216\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"In setback for oil companies, tax board raises trans-Alaska pipeline value by $3 billion - 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