Case Study

Midstream Utilization vs. Value

One of our large midstream pipeline operators had a FERC regulated asset in a state that allows for the removal of intangible assets in the appraisal. We needed to take an aggressive stance on intangibles and secure a win for the client, proving our case through aggressive analysis, energy-focused ASA expertise that spans decades, and our relationships with the state.

THE CHALLENGE

A client had non-taxable items built into the Fair Cash Value of a FERC regulated asset. The challenge was proving to the state that the items that they were assessing were intangible and therefore not taxable.

THE APPROACH

First, we looked at the definition of what type of assets historically fall into the intangible asset category. We identified significant intangible value in the state-provided appraisal of the asset. In this particular state, intangibles are allowed to be excluded from the value of the asset, and we needed to show proof and negotiate our reasoning to have those values removed.

THE SOLUTION

A tax savings of over $300,000 for our client based on the proposed to final value for the tax year.

Explore Our Other Case Studies

Oil & Gas LEARN MORE Midstream LEARN MORE Renewable Energy LEARN MORE Frac Sand / Mining LEARN MORE