ITEM TITLE:
Approval of First Amendment to Settlement Agreement Regarding the Assessment of the Trans Alaska Pipeline System (TAPS)
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FISCAL NOTES:
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RECOMMENDATION:
Approve First Amendment to Settlement Agreement Regarding Assessment of TAPS
SUMMARY STATEMENT:
On February 22, 2016, the owners of TAPS, BP Pipelines (Alaska) Inc., Conoco Phillips Transportation Alaska, Inc., ExxonMobile Pipeline Company, and Alyeska Pipeline Services Company, as agent for the Owners; (collectively Taxpayers) and the North Slope Borough, the Fairbanks North Star Borough, and the City of Valdez, (collectively Municipalities) entered into the TAPS Ad Valorem Settlement Agreement for tax years 2016 through 2020. The Parties desire to extend the TAPS Ad Valorem Settlement for an additional term of (5) years on the original terms and conditions.
The first amendment to the settlement agreement regarding the assessment of the Trans Alaska Pipeline System (TAPS) will extend the original TAPS Ad Valorem Settlement Agreement for an additional five (5) years, beginning tax year 2021 and continuing through tax year 2025. Each reference in the TAPS Ad Valorem Settlement to tax years 2016 through 2020, is hereby amended to reference tax years 2016 through 2025.
The first amendment will apply to all successors and assigns. All other terms and conditions of the TAPS Ad Valorem Settlement are reaffirmed in the agreement and shall remain in full force and effect during the additional five (5) year term.