20Year Tax Agreement for Terminal in Richmond County

first_imgSERVICE N.S./MUNICIPAL RELATIONS–20-Year Tax Agreement forTerminal in Richmond County The Municipality of the County of Richmond will collect at least$3 million per year in municipal taxes once the Bear Headliquefied natural gas (LNG) terminal proposed for Point Tupper isoperational in late 2007. The 20-year agreement, announced today, Sept. 20, by theMunicipality of the County of Richmond and Anadarko — thecompany building the plant — allows the municipality to collecttaxes based on the estimated cost to construct the Bear Head LNGTerminal. Taxes may increase if the actual costs are higher thanestimated. “A very tangible benefit of new industrial development inRichmond County is the contribution to the county’s tax base,which allows the municipality to plan and invest for the long-term,” said Gail Johnson, warden of Richmond County. Under the provisions of Bill-74, The Oil Refineries and LNGPlants Municipal Taxation Act, the province can set the level ofmunicipal taxation to be paid by a refinery or LNG plant afterconsultation with the affected municipal unit. “The Municipality of the County of Richmond and Anadarko haveagreed upon a fair level of taxes,” said Barry Barnet, Ministerof Service Nova Scotia and Municipal Relations. “This co-operation between municipal units and the private sector is whatthe legislation envisioned, so the province is happy to act onthe joint request to set the taxes under regulation.” The agreement stipulates that after the first year of operations,the taxes will be indexed to the Consumer Price Index (CPI). Theinitial term of the agreement is 20 years with an option for thecompany to renew for a subsequent term of five years. “Anadarko is committing to paying fair taxes and to being anactive contributor to the community. We entered into theagreement with the municipality in the spirit of ensuring thatour obligations are met and that we are transparent with thecommunity,” said Randy Kopjar, vice-president, gascommercialization, Anadarko Canada Corporation. Any future arrangements such as plant expansions and additionswould require a separate agreement.last_img read more