Company disputes taxes on pipeline operations at district court hearing

The Woods County Equalization Board convened on July 10, 2025, to address several key issues regarding property assessments and tax disputes involving local pipeline companies. The meeting focused on the ongoing discussions surrounding tax obligations and the implications of double taxation for companies operating in the area.

The session began with a review of historical tax payments related to a specific pipeline, with board members noting that previous companies had consistently paid taxes for over 23 years. However, the current company involved has expressed reluctance to continue these payments, prompting a detailed examination of the situation. Board members emphasized the importance of gathering all relevant information before making any decisions, indicating that the matter may require further investigation and potential legal action.

Jerry, a representative involved in the discussions, highlighted the need to affirm the assessed value of the pipeline and reiterated that the previous owners had fulfilled their tax obligations. He expressed concern over the current company's attempts to contest these payments, suggesting that they were trying to evade their responsibilities. The board acknowledged the complexity of the situation, noting that the company’s claims would need to be substantiated with evidence.

As the meeting progressed, representatives from the pipeline company presented their position, arguing that they were being subjected to double taxation. They contended that the taxes imposed on the pipeline were unfair, as they were already paying gross production taxes on the gas extracted. The discussion included legal considerations, with the company’s counsel indicating that they were preparing to submit documentation to the court to seek a resolution.

The board members engaged in a thorough debate regarding the definitions of flow lines versus gathering lines, which are crucial in determining tax liabilities. They discussed the legal framework surrounding these classifications and the implications for the current tax assessments. The representatives from the pipeline company maintained that their operations were essential for gas production and should not incur additional taxes beyond what they already pay.

In conclusion, the meeting underscored the complexities of property tax assessments in Woods County, particularly concerning the oil and gas industry. The board agreed to continue reviewing the evidence and legal arguments presented, with the possibility of further court involvement to resolve the disputes. The next steps will involve gathering additional information and preparing for potential litigation, as both sides seek clarity on their tax obligations moving forward.