Home Gas effect Oil and gas company will have six months to pay Kneehill County taxes

Oil and gas company will have six months to pay Kneehill County taxes

0


Kneehill County Council has approved a six-month payment plan for an oil and gas company’s 2021 tax bill. The decision was made at the regular council meeting on September 14.

Councilors read a memo from Caroline Siverson, a property tax officer, regarding the application by Pine Cliff Energy Ltd. a six month payment plan for their current tax bill.

“Pine Cliff Energy Ltd. approached Kneehill County about a payment schedule for a tax deferral payment agreement for overdue 2021 taxes, ”Siverson’s memo said.

“They would like to make a six-month deal for equal monthly payments and not have late penalties imposed on them.

“In order to help businesses during these difficult economic times, the council has been proactive in using the tools permitted by the Municipal Government Act (MGA) for the past two years.

“The intention has been to minimize defaults on renewal fees by offering a payment period without penalty.

“We’ve had great success with the collections and we have a good client looking for a shorter prepayment period to go through this year and then be back on time for the 2022 taxes.

“Pine Cliff has already been approved for tax deferral payment agreements for 2019 and 2020 taxes. They have been a great customer with on-time payments every month. The 2020 taxes will be paid in full on September 30, 2021.

“Pine Cliff expects its cash flow to increase over the next few months and has requested a six-month extension to pay 2021 taxes with full payment made by March 31, 2022. At this point, they expect their 2022 to be paid in full by the due date. date of October 31, 2022.

“Additionally, Pine Cliff has also acquired past due assets and will be paying a pro-rated 2020 tax from the date of acquisition and full 2021 taxes. It is a business that continues to grow and will be a benefit. for the region for years to come, ”Siverson added.

A copy of the letter from Pine Cliff was given to councilors. “As you know, over the past few years, natural gas producers have suffered from some of the lowest natural gas prices in decades,” the letter said. “Prices recovered in late 2020 and we are now in a position to work to ensure that Kneehill County municipal tax is paid on time, in full, in 2022.”

Warden Jerry Wittstock asked if Pine Cliff had already paid their 2020 bill, and Siverson said yes, their bill was due in late September 2021, with the new plan starting in October.

Com. Glen Keiver wondered if the tax deferral plan was setting a precedent, but he saw the benefit. “I guess a bird in the hand is worth I don’t know how much in the bush,” Keiver said.

The prefect accepted. “Well that’s better than not getting paid, that’s for sure,” Wittstock said.

Siverson said it appears the payment plans have been effective in accommodating some tax bills.

“Our other clients currently on tax deferral contracts are also doing well with their monthly payments and some have informed us that their intention is to pay their 2021 taxes by the due date this year,” he said. she declared.

She noted that Pine Cliff’s tax plan would have no effect on the 2021 budget.

Councilors unanimously approved Pine Cliff’s request.