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Clay County commissioners reach impasse on Keystone crossing fees

Clay County commissioners reach impasse on Keystone crossing fees

Pipelines International, December 01, 2009

Commissioners from Clay County in Kansas, United States of America, have instructed the County Highway Department to refrain from issuing any road crossing permits required to construct TransCanada’s Keystone Pipeline until the issue of road crossing fees has been resolved.

Clay County has proposed a “road crossing fee” of $US1,500 for each road crossed by the Keystone Pipeline in their county.

TransCanada has said that state legislation prevents the County from charging the company a tax or fee in lieu of tax.

The disagreement stems from the 10 year tax concession granted to TransCanada by the Kansas Department of Commerce under which TransCanada receives $US55.49 million in tax credits for the pipeline, which will be paid in 10 installments over 14 years.

The 3,456 km Keystone Pipeline will provide a secure and reliable supply of Canadian crude oil to meet the growing demand by US refineries and markets. The initial phase of the pipeline is nearing completion with the pipe lay work set to reach Patoka, Illinois by the first quarter 2010.


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