FAIRBANKS, Alaska — The Fairbanks North Star Borough on Thursday unanimously approved spending an additional $1 million on legal fees to defend its assessment of the trans-Alaska oil pipeline.
The borough, the state and pipeline owners since 1986 have been in dispute over the value of the pipeline, which can make a difference in the millions of dollars when owners pay their property tax bills.
“You’re talking about the attorney fees, but we’ve recovered a lot more in the value of the pipeline,” said borough Mayor Luke Hopkins.
The value has been disputed every year since 2006, the Fairbanks Daily News-Miner reported.
The only dispute that has been settled was the 2006 case. The Alaska Supreme Court in February upheld a lower court ruling that said the pipeline was worth nearly $10 billion, not the $850 million claimed by owners.
For the Fairbanks borough, the difference was an extra $6 million in property taxes owed by pipeline owners.
Assemblyman John Davies expressed concern over the expense of the ongoing litigation but said it made sense.
“That’s why I think it’s a no-brainer,” he said. “If our valuation was just adopted by the taxpayer, we wouldn’t have to go through this expense.”
Borough Attorney Rene Broker said the borough has been awarded about 40 percent of its lawyer fees in the rulings.
The Alaska Supreme Court in May upheld $2.5 million in attorney fees to be split among the Fairbanks North Star Borough and other municipalities. The Fairbanks borough’s share was $837,649.84.
“We are spending $600,000 but we’re getting 6 million back in taxes, so it’s an investment that’s worth making,” Assemblywoman Kathryn Dodge said.
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