Rover Pipeline Loses Ohio Supreme Court Decision to Lower Tax Bill

Rover Pipeline, a 713-mile natural gas pipeline, was designed to carry up to 3.25 billion cubic feet per day (Bcf/d) of Marcellus and Utica gas from Pennsylvania, West Virginia, and Ohio to destinations in Ohio, Michigan, West Virginia, and Canada. The project was completed and came online in late 2018 (see FERC OKs Final 2 Rover Pipeline Laterals – Now 100% Online). Rover’s original estimated cost to build the project was $4.08 billion. It ultimately cost $6.3 billion, as historically high rainfall led to additional unforeseen expenses, delays, and inspections. Most of the pipeline runs through Ohio, which assesses a property tax on such projects. Rover and Ohio disagree over the value to be assigned to the pipeline for annual taxation purposes. After several appeals, the case headed to the Ohio Supreme Court in May (see Rover Pipeline Heads to Ohio Supreme Court to Lower Tax Assessment). The Supremes issued their ruling yesterday, and it didn't go Rover's way.

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