July 31, 2014

Ten counties to get big lift from jump in original Keystone pipeline assessment

Ten Nebraska counties will get a big lift from a big jump in the assessment of the original Keystone oil pipeline.

TransCanada began operation of the original Keystone in 2010, pumping crude oil from Alberta, Canada through eastern Nebraska. The assessed valuation of the pipeline has increased by $145.2 million this year, now assessed at $538.5 million. The extra tax revenue flows to 10 counties in eastern Nebraska.

The Keystone pipeline enters Nebraska from South Dakota at Cedar County, which has seen the assessed valuation of the pipeline there increase from $24.5 million in 2011 to $96.3 million this year.

Cedar County Assessor Don Hoesing says the increased tax revenue as a result of the increase in assessed valuation will help offset losses from the drought.

“The drought is severe here,” Hoeing tells Nebraska Radio Network affiliate KLIN. “People who have been around a long time talk of the 50’s and 30’s, it was as bad as those years, pretty extreme.”

TransCanada has proposed a second oil pipeline, the Keystone XL pipeline, through Nebraska. It has been mired in controversy. A new route for Keystone XL has been proposed and is under review by both the US State Department and the Nebraska Department of Environmental Quality.

Hoesing has no complaints about how TransCanada built the pipeline through the county.

“Didn’t hear anything negative about the whole process,” Hoesing says. “They really did a good job as far as trying to put the land back as it was, prior to burying the pipeline.”

The assessed valuation of the original Keystone ranges from $7.7 million in Platte County to $96.3 million in Cedar County.