• By MARTEL ARDOIN
• Special to The Advocate
• Published: Sep 15, 2009 - Page: 3BA

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VILLE PLATTE — The Evangeline Parish Police Jury voted Monday to reject a request from Pine Prairie Energy Corporation for additional tax breaks involving transfer to the parish of property and the base gas in the company’s salt caverns.

The vote was made at the recommendation of the parish’s Industrial Development Board No. 1.

Pine Prairie Energy Corp. has been using property in Easton to build underground caverns to store natural gas.

Dr. William “Tojo” Ward, chairman of the industrial development board, said Pine Prairie Energy Corp. asked for an addendum to the memorandum of understanding between the company and the board to transfer ownership of an additional 250 acres of property for present and future expansion.

The company also asked the parish to accept ownership of the base gas in the salt caverns, Ward said.

The firm also asked the board to expand tax breaks for caverns 4 and 5.

Ward said the industrial development board met last week, and, on advice of its legal counsel, decided the liability risks would be too great and complex should the board take ownership of the base gas.

Ward also noted that Pine Prairie Energy’s agreement with Evangeline Parish is “equal or superior” to similar agreements in neighboring parishes with salt dome gas storage projects.

The parish would face the loss of $688,275 a year in tax revenues should it decide to take ownership of the caverns. An additional $98,230 a year would be lost shou5ld the base gas ownership go to the parish, he said

“This recommendation should in no way be construed as a negative with regards to the board’s working relationship with Pine Prairie Energy Corporation,” Ward said. “They are a great corporate partner and very active in the community.”