TransCanada subcontractor public relations people visited Winner for a "hearing" a couple years or so ago. I have some posts about it here at Dakota Today. Since that hearing, they have hired local people to get easement agreements, etc. A question I asked about illegal aliens being employed resulted in them answering that it was not a concern of Trans Canada, it was strictly up to their subcontractors or their responsibility. We were given all kinds of assurances about the slim to none chances of pipeline breaks in any 50 year period, etc.
Well, they built the oil pipeline in eastern South Dakota and last night KELO-TV indicated that the property tax actually collected on the pipeline last year was a fraction of what had been promoted. Apparently in the neighborhood of 30%. If you take a look at Cory Heidelberger's Madville Times, you can find information on other disinformation from TransCanada and South Dakota.
Today I finally started looking for the depreciation rate for pipeline and related facilities. I am not a master of accountant speak, but it appears that pipelines and facilities may be worth less than nothing after about 30 years. A PDF with such information in detail is available. If you have the patience to slog through it and can summarize it, please post a comment. This suggests not only a much lower starting point for property tax, but also a steady decline in such property tax of 3% a year or so. For all I know, South Dakota may have some other system that county auditors use.
Now, Nebraska has awakened from the Sandman of the Sandhills sleep and finally figured out that an oil pipeline through the Sandhills and over the Ogalalla Aquifer is a serious threat to the drinking water of thousands and the federal government has decided to hold up approval until (you guess it) after election day next year. If you look at the map from that webpage at right, you will notice that the aquifer extends into South Dakota. And, if you look at the US State Department maps, the pipeline is planned to run within about 5000 feet of the Winner Water System wells and within a 1000 feet or so of the Colome City wells. My guess is that the Tripp Country Rural Water System wells are also not too far from the pipeline.
This suggests that the pipeline route needs change not only in Nebraska, but also in this immediate area.
Anyway, I am not nearly as convinced of the benefit of this pipeline as apparently are local Winner businessmen and county commissioners who can only see the dollar signs for property tax without regard to the wonderful idea of spening $millions or $billions to regain water fit to drink. Even so, they might want to recheck the reality of TransCanada pipelines with the promises and hopes they are still dreaming about and the bubble they are floating on.
Also, as I indicated to them and other locals here, the State Department CD information also showed that the pipeline might not actually end at Steelville, KS. but might end up with oil or refined products going to the Texas coast for export. If that is actually the case, the pipeline will likely increase the price of midwest petroleauml rather than decreasiing it.
With the delay in the pipeline, perhaps the South Dakota legislature can pull their collective heads out their legislative rectums and set up a $100 million fund for spill cleanups that also increases every year to cover the increased risks of leaks as the pipeline depreciates..
** Stay tuned for colder weather and you guessed it, increasing fuel prices --- Doug Wiken
Now I might not be the brightest bulb on the tree but I've managed to get this far in life without incident. Why don't they build a refinery where the oil is? Do they need mass amounts of water for this process? If they have the pipeline completed to a certain point why not build the refinery there? The oil line rupture in the Yellowstone river this summer should have been a wake up call to everyone. Oh, and I've never believed anything a large corporation tells me. They have there own agenda.
Posted by: Teresa | Nov 17, 2011 at 08:53 AM