- Associated Press - Sunday, March 6, 2016

ANCHORAGE, Alaska (AP) - The Trans-Alaska Pipeline System is worth $8 million when it comes to taxes.

Two settlement agreements set the pipeline’s value through 2020, the Alaska Journal reported (http://bit.ly/24Kci0N).

Valdez and the North Slope and Fairbanks North Star boroughs have been litigating over the pipeline’s value and tax rates for years.

Pending litigation related to the pipeline’s value will be dismissed.

A statement from the Department of Law says the deals mean the North Slope Borough and the City of Valdez will return about $7.6 million and $7.3 million respectively to the state for payments exceeding the cap on property tax revenue.

North Slope Mayor Charlotte Brower said in a statement that the five-year valuation provides financial predictability and security.

“By fixing the value of the Trans-Alaska Pipeline System for the next five years, this agreement will provide a more stable and predictable budget environment and help ensure the financial security of the borough moving forward,” Brower said in a statement. “It also brings an end to the need for continuous litigation in which the borough and other municipalities have spent a decade and millions of dollars to obtain a fair valuation of TAPS.”

Four different groups had estimated the value of the pipeline at between $2.7 million and $13.7 million.

The pipeline was the world’s largest construction project to be privately funded when it was built in 1977 at a cost of $8 billion.

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Information from: (Anchorage) Alaska Journal of Commerce, http://www.alaskajournal.com

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