BP Pipelines (Alaska) Inc. v. State, Dept. of Revenue

Summary

The Alaska Supreme Court affirmed the superior court’s valuation of the Trans-Alaska Pipeline System for 2006 property-tax purposes. It held that the governing statute did not require exclusive use of fair-market value, that use value and replacement cost less depreciation were permissible, that the court properly rejected deductions based on tariff regulation while allowing deductions for excess capacity, and that supplemental-tax interest ran from the original tax due date. The court also upheld the inclusion of undeveloped but technically, economically, and legally deliverable reserves in determining economic life.