Mountaineer XPress Pipeline Seeks Tax Break from WV Counties

Columbia Pipeline Group is trying to convince counties in West Virginia where its proposed Mountaineer XPress Pipeline will be built, to reduce the amount of property tax they will have to pay under WV state law. Mountaineer XPress Project (MXP) includes 165 miles of new pipeline from Marshall County, WV to Wayne County, WV with approximately 2.7 billion cubic feet per day (Bcf/d) of transportation capacity from existing and future points of receipt along or near CPG’s system (see Columbia Pipeline’s Mountaineer XPress Project Accepted by FERC). In addition to new pipeline, the $2 billion project also includes constructing three new compressor stations and upgrading three existing stations. Columbia is shopping the concept of a PILOT–a Payment In Lieu Of Taxes. Such a plan essentially means they will pay less money than a county would otherwise collect in regular property taxes on the pipeline. Here’s the strange thing–the counties and school districts affected would end up keeping more of the money collected from PILOT payments than they would from regular property tax payments. It’s actually a win/win–Columbia pays less and more of the money paid stays local. Go figure…

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