Hardin County commissioners and other county officials heard from a tax consulting firm representative at a natural gas pipeline company looking at constructing a compressor station in the western part of the county and seeking a possible tax abatement during the May 16 regular meeting.
Cameron Morgan, of KE Andrews Tax Consultants, presented information of a potential compressor station for Blackfin Pipeline, a subsidiary of WhiteWater Midstream, pursuant to a permit for a 48-inch pipeline running from Colorado County to Jasper County granted by the Railroad Commission (RRC) in March 2023. According to Morgan, Blackfin is looking at utilizing a 42-inch pipeline with some 36-inch segments included.
The pipeline will run north of Sara- toga and eastward across Hardin County into Jasper County, according to Morgan, with a potential compressor station near the Hardin-Liberty County line, off FM 787, between Saratoga and Thicket.
“This is a $70 million investment,” Morgan said of work that would begin at the end of the year to be in full operation in the third quarter of 2025. He stated the compressor station is vital to moving columns of natural gas and Blackfin is looking at leasing 1,600 acres for the project in a reinvestment zone.
According to Morgan, Blackfin does not know the exact location for the compressor station in the 1,600-acre parcel but has estimated that the potential project would create two permanent jobs, along with 50-60 construction jobs in the process.
In the future, Morgan said, they will apply for an application for a 70% tax abatement for 10 years.
“In a breakdown, that would be about $4 million to the county over the next 25 years and with West Hardin CCISD that would be about $11.49 million for the same period,” he added.
The money would come from the taxable values of the county and school district.
In the past, Tax Assessor-Collector Shirley Cook said, the county had several situations where they had to refund money to compressor station owners whose offices were not located in Hardin County.
“I don't think this court could ever go for that," McDaniel said of doubts that a 70% tax incentive would be allowed for such a long-term commitment. “If we were to consider it, it would be some type of start step where we start at 70% and step down each year over about a five-year period. That’s a big ask and we’re a small county.”
Morgan mentioned the company, as tax consultants, also uses Chapter 312 of the Texas Tax Code. According to KE Andrews Tax Consultants' website, Chapter 312 created the ability for Texas jurisdictions to offer this incentive to developers. Tax abatements are an economic development tool available to cities, counties and special districts to attract new industries and to encourage the retention and development of existing businesses through property tax exemptions or reductions. School districts may not enter into abatement agreements.