Ohio’s Inflated Rover Pipeline Tax Case Lingers in Court
Last December, MDN told you that Rover Pipeline had to file a lawsuit in self-defense against the Ohio Tax Commissioner for her overly aggressive property tax assessment that inflates the project’s market value, causing it to pay too much in property tax (see Ohio Tax Commissioner Putting New O&G Pipelines at Risk). The dispute centers on the state treating $2.2 billion in weather-related construction overruns and an unrealistic “infinite lifespan” assumption as value-adding assets, violating constitutional principles of fair market valuation, under which taxes should reflect what a willing buyer would pay rather than total development costs. The problem is, school districts and various municipalities thought they were going to get an extra windfall and are now in trouble because of their own poor planning and unrealistic expectations. Read More “Ohio’s Inflated Rover Pipeline Tax Case Lingers in Court”
In March, South Carolina regulators approved Duke Energy’s proposal to build a 1.4-gigawatt (GW) natural gas-fired power plant in Anderson County, marking the utility’s first new generation project in the state in a decade (see 
Virginia is officially rejoining the Regional Greenhouse Gas Initiative (RGGI) carbon tax scheme this July after a liberal court deemed its previous withdrawal under former Governor Glenn Youngkin unlawful. This reentry forces utilities like Dominion Energy to resume purchasing carbon credits—modern-day indulgences for the “sin” of emitting carbon dioxide, the same thing mammals exhale with every breath. The cost will be passed on to ratepayers through monthly bill increases. Virginians have no one to blame but themselves when their electric bills soar due to this idiotic carbon tax that does nothing more than allow politicians to pass out money to their favorite constituent groups as a reward for voting them into office. Welcome to the USSR of Virginia. 
In early February, MDN told you about West Virginia Senate Bill (SB) 706, which proposed reducing the state’s severance tax from 5% to 3% for new natural gas and oil wells drilled after June 30, 2026, that meet specific production thresholds (see 
West Virginia Senate Bill (SB) 706 proposes reducing the state’s severance tax from 5% to 3% for new natural gas and oil wells drilled after June 30, 2026, that meet specific production thresholds. This reduction applies only to future projects, leaving existing wells at current rates. While severance taxes provide vital but volatile revenue—ranging from $98 million to $588 million in recent years—this legislation seeks to adjust the fiscal landscape for one of the state’s most profitable resources. The bill is currently under review by the Senate Committee on Energy, Industry, and Mining and awaits further legislative approval. 
An interesting case in Ohio deals with whether or not natural gas can be taxed, depending on how it’s used. The Ohio Board of Tax Appeals ruled on Tuesday, January 6, that MGQ Terminal, Inc. is exempt from use tax on natural gas purchases used to process asphalt to customer specifications. Although Tax Commissioner Patricia Harris had assessed use tax for the period between 2013 and 2016 based on the determination that the company was engaged in a storage business, the board reversed this decision, finding that the company’s activities qualify as tax-exempt “manufacturing operations.” The board held that MGQ’s use of natural gas to heat, agitate, and blend refinery waste into homogeneous, specification-compliant products constitutes a transformative manufacturing process rather than mere storage. 
In November, Pennsylvania finally passed a budget—four months late. As part of the deal struck between Democrats and Republicans, the Regional Greenhouse Gas Initiative (RGGI) carbon tax scheme was permanently ash-canned (see 
The Ohio Tax Commissioner is facing a lawsuit from Rover Pipeline over an aggressive property tax assessment that inflates the project’s market value. The dispute centers on the state treating $2.2 billion in weather-related construction overruns and an unrealistic “infinite lifespan” assumption as value-adding assets. Critics argue that this approach violates constitutional principles of fair market valuation, under which taxes should reflect what a willing buyer would pay rather than total development costs. 
In August 2014, the Marshall County, WV board of commissioners voted to approve a plan to build a Marcellus Shale-powered electric plant in the county (see 
Pipelines in West Virginia (like most other states) pay property taxes. It’s a significant revenue generator for counties. There are many pipelines in Wetzel County, including three NGL pipelines owned and operated by MarkWest (aka MPLX) that connect to the Mobley Gas Plant. In 2022, MarkWest filed a tax return for the pipelines showing a 35% reduction in value due to less-than-forecasted pipeline usage, a concept called “economic obsolescence based on inutility.” The County Assessor for Wetzel County challenged MarkWest’s claim. 
Pennsylvania assesses an impact fee (PA’s version of a severance tax) on shale drillers, raising revenues that are paid to local municipalities (60% collected) and the black hole of Harrisburg politicians (40%). Yesterday, the PA Independent Fiscal Office (IFO) issued an estimate of how much the impact fee will raise this year, with the funds distributed in April of next year. The IFO says it expects, based on the price of natural gas and the number of new and existing wells, that PA will generate $239.9 million from the impact fee in 2025, a huge $75.3 million (46%) increase from 2024. The average fee per well generated will be $19,056 in 2025, up from $13,560 (41%) in 2024. 
Two weeks ago, Pennsylvania finally passed a budget, four months late. As part of the deal struck between Democrats and Republicans, the Regional Greenhouse Gas Initiative (RGGI) carbon tax scheme was permanently ash-canned (see 
Earlier this month, the Pennsylvania Public Utility Commission (PUC) approved a Tentative Order by a 3-2 vote, proposing a statewide model tariff (tax) to manage the growing impact of large-load customers, such as AI data centers, on the electric grid (see