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November 15, 2011 06:05 PM

Oil Pipeline Not Paying Out

Sioux Falls, SD


TransCanada is going to move its controversial Keystone XL oil pipeline around the Nebraska Sandhills and much of the Ogallala Aquifer that lies underground.

But company officials say the pipeline path won't change much in South Dakota, and they’ve been touting the economic benefits of the Keystone XL project for South Dakota.

TransCanada has already built one pipeline through the eastern part of the state and this second pipeline is still slated to cut through the western South Dakota, but if it follows the track record of the first pipeline, it may not bring in as much money as some may hope.

The original Keystone came online last year and in 2010, only paid out $2.9 million in property taxes combined in the ten counties it crosses,  counties that were counting on much more.

State documents show the Clark County Commission passed a resolution in support of the pipeline in 2007 and thought the Keystone pipeline would generate more than $9 million in property taxes in all of those counties combined.

The resolution also said that Clark County thought it would receive an estimated $1.4 million dollars in property taxes in the first year.

Public records show Clark County didn't even get half of that. The county only brought in $359,646 in property taxes in 2010.

In fact no county even received a half million dollars from the pipeline. Day County received the most money bringing in nearly $465,000.

So, even though the first Keystone pipeline is shipping oil right now it's not necessarily shelling out all the cash it had promised.

The nearly $3 million in property taxes is less than half of the $6.5 million in total state taxes the company officials thought it would generate in the first year.

When it comes to how much money TransCanada has paid out in sales tax and excise tax those numbers are confidential under South Dakota law.

For a county by county break down of the property taxes paid out for 2010, review the table below: 
 
Marshall $286,280.96
Day $464,958.38
Clark $359,646.04
Beadle $318,178.08
Kingsbury $169,585.01
Miner $391,047.39
Hanson $152,108.62
McCook $139,425.78
Hutchinson $424,504.72
Yankton $247,965.58
TOTAL $2,953,700.56
 
Source: County Auditor’s Offices
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