GATESVILLE — The 20-inch crude oil pipeline that will cut across 37 miles of Coryell County could be valued at nearly $30 million on property tax rolls, an appraisal consultant told county commissioners here Monday.
The property value of the BridgeTex Pipeline, which will stretch 400 miles from Colorado City in West Texas to Houston, would be appraised based on its cost of about $856,000 per mile, said Dale Heiskell of Pritchard & Abbot, a consulting firm that specializes in pipeline and utility appraisals.
When a pipeline is in the ground but not “energized” with product flowing, an appraiser would use 50 percent of the cost for tax calculation, Heiskell said, and 100 percent when the line is energized.
“Once it is in the ground, it can be a good income producer in the county,” Heiskell said.
Mitch Fast, chief appraiser for the Coryell Central Appraisal District, gave commissioners a “ballpark estimate” of about $130,000 as the county’s property tax from the finished pipeline at the rate of 44.9 cents per $100 valuation.
Independent school districts could levy property taxes on the miles of pipeline crossing their districts, Fast said. The pipeline route cuts across parts of the Jonesboro, Gatesville, Oglesby and Moody ISDs.
Construction of the pipeline, a joint venture of Magellan Midstream Partners and Occidental Petroleum Corporation, is set to start this fall with oil flowing through the pipe by next summer.
Magellan acquired about 75 percent of the private right-of-way easements for the pipeline route crossing 20 Texas counties, company spokesman Bob Miller told commissioners.
Magellan will bring its own construction contractors for the pipeline, Project Manager Brandon Cox told the commissioners, but local contractors may be involved in building fences and supplying gravel.
“Pipeline construction is a fairly specialized industry that is highly scrutinized by the federal government,” Cox said.
County officials, including Road Superintendent Allen Neel, will meet with company officials for a preconstruction meeting two weeks before the project starts, said Varnell Roberts of Universal Field Services, permit agent for the project.