Chesapeake pays $9 million in property taxes

12 28, 2011 by Shreveport Times

Chesapeake Energy Corp. is paying more than $9 million in property taxes this year to parishes where the Haynesville Shale natural gas exploration and development is taking place.

Of that, $7.3 million is going to DeSoto Parish taxing agencies. The parish is in the heart of the shale play.

The payments are for property, real estate and personal property taxes paid by Chesapeake, the parent company, and its related operations, including Chesapeake Midstream and drilling subsidiary Nomac Drilling LLC.

"Chesapeake is proud to contribute to Louisiana's economy while also producing a carbon light fuel that cleans our air and builds our nation's energy security," Paul Pratt, Chesapeake's director of corporate development said in a news release. "In every measure of our local economy, whether it's sales and ad valorem tax receipts, real estate values and direct or indirect employment, the Haynesville Shale economies have been largely insulated from the economic downturn impacting the remainder of the country."

The tax payments represent millages set by the parish governing bodies, school boards, municipalities, law enforcement, fire districts and any other taxing entities.

In addition to DeSoto, other payments include:

Bienville Parish, $297,155.15

Bossier Parish, $675,043.73

Natchitoches Parish, $173.438.73

Red River Parish, $288,263.36

Sabine Parish, $597,467.04

Webster Parish, $66,981.14

Chesapeake's check to DeSoto tax collectors is the largest cumulative payment in the parish. Of the top 10 taxpayers, oil and gas companies fill eight spots.

Leading the list as the single largest taxpayer, however, is International Paper Company's Mansfield Mill, at almost $6.9 million. Cleco Power is eighth with $1.7 million.

Second to Chesapeake is EXCO Operating Co. at $5.1 million, and third is El Paso E&P Company LP at $3.6 million.