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Court grants SandRidge reinvestment zones
Two new reinvestment zones were established by the Pecos County Commissioners Court Tuesday, both for SandRidge Energy.
In separate resolutions, the court approved a reinvestment zone for the Century Plant and for Pikes Peak/Grey Ranch.
During a public hearing, only Alan Haney spoke out against the reinvestment zones, typically a preliminary step to the granting of tax abatements.
"I believe they should pay their fair share of taxes," Alan Haney said. "The good projects they do in the community doesn't excuse them from paying their full share of taxes. ... The county needs to reap the benefits of extracted minerals."
Haney said that boom-bust cycles are inherent in the energy industry and that despite some forecasts to the contrary the local economy will have a future downturn. Now is the time, he said, for the county to pay down bonds and perhaps increase its reserves.
"Energy companies are making record profits," he said. "They can afford to pay their share fair share of taxes."
Pecos County Commissioner for Precinct 3 Jay Kent said that the county can't accumulate reserves, but that he did share some of Haney's concerns, particularly when a small business owner can't receive the abatements given to big corporations.
"SandRidge has contributed immensely to the local economy," Kent said. "But I do have mixed feelings."
The Century Plant, which is to be transferred to Occidental Petroleum upon completion of construction, is a proposed gas plant southeast of Fort Stockton off US 285, according to application information filed by SandRidge with the court. The plant will separate methane gas from CO2 gas, and remove impurities, moisture and liquids from the gas.
The planned treating capacity is 675 million cubic feet per day. The cost of the Century Plant is expected to be about $812 million, according to the documents.
The project also calls for the building of two CO2 pipelines. The first will stretch from the Century Plant to a delivery point near McCamey, with the second to run from the Grey Ranch Plant to near the Mitchell gas plant.
SandRidge requested that the pipelines be included in the reinvestment zone, but that it is not seeking to have them included in a tax abatement, according to the documents.
The Pikes Peak and Grey Ranch plants are planned to collect and treat natural gas that is high in CO2 content, according to the application documents filed with the court. Total project cost is estimated to be about $352 million.
In another energy-related matter, the court voted to amend Exhibit D of a tax abatement agreement with Sherbino II Wind Farm LLC to include a local spending plan and a job fair.
According to the amended version, the wind farm is to try to employ as many as 10 Pecos County residents, providing they meet qualifications. The amendment also instructs the wind farm to have its primary contractor use Pecos County businesses for services and supplies to the fullest extent possible.
The wind farm also agrees to have a job fair at least one month prior to the start of construction. The wind farm is also required to advertise the job fair at least two weeks prior in the "main Fort Stockton and Iraan newspapers."
Among other business, the court:
>> renewed the $10 County Road and Bridge Fee; the fee is an additional fee to register a vehicle in Pecos County, to be used for upkeep of county roads and bridges
>> approved a resolution recognizing the necessity of acquiring surface-only fee title and the acquisition of about 380 acres in the Iraan area; the resolution empowers the court to negotiate the purchase of the land or initiate condemnation proceedings under eminent domain laws; according to Kent, the court has been involved in negotiating the purchase of the land for six years; the purchase will allow the county to own the land that is the site of Iraan Golf Course and the location of Precinct 3 offices and buildings; the land had been used by the county through a longterm lease, Kent said
>> approved a funding request for the Pecos County Memorial Hospital Auxiliary Memorial Garden; the county will fund $12,500 now and review the matter in December as to the funding of another $12,500
>> approved a plat for the Fort Stockton Industrial Park as submitted by Doud BTS
>> approved the continuation of insurance coverage for an employee of Justice of the Peace Precinct 6; the continuation will be in effect through Sept. 30
>> approved a bid of $20,935 for a 2009 Ford Explorer XLT from Stockton Ford; the vehicle is to be used by the family and consumer science agent at the county extension office
>> approved the transfer of funds, the payment of overtime and accounts payable for PCMH
>> approved payment of county overtime, presented by county treasurer's office
>> approved line item transfers and budget amendments, the financial report and all accounts, presented by the county auditor's office
The court met in special session Friday to call for bids for: about 30,000 gallons of CSS-1H (an emulsion) or equivalent; about 30,000 gallons of CRS-2 Cathionic Emulsion; and about 100,000 gallons of AC-20-5TR Liquid Asphalt.
All bids are required to include two hours demurrage and freight charges for delivery to Fort Stockton, Iraan and Coyanosa. The bids are scheduled to be opened at 11 a.m. Sept. 8.
The court also met in emergency session Friday to grant a bid law exemption for PCMH's cooling tower/air conditioning systems. According to PCMH chief executive officer Russell Tippin, a malfunction in the cooling tower Friday morning had caused the hospital's air conditioning to fail. The replacement of the cooling towers had been previously scheduled and listed in the 2008-09 budget.
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