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Aux Sable reaches tax settlement

Cuts 10-year deal with 10 area taxing bodies on value of local plant

CHANNAHON, Ill. — Aux Sable Liquid Products has reached a 10-year property tax settlement agreement with several area taxing bodies.

The agreement with Minooka Elementary School District #201, Minooka Community High School District #111, the village of Channahon, Grundy County and six additional taxing districts covers Aux Sable’s Channahon natural gas liquids extraction and fractionation facility. It ends several years of disputes and appeals over the valuation of the facility, which caused uncertainty and negatively impacted relationships between the taxing districts and Aux Sable.

Ten different taxing districts receive property tax revenue from Aux Sable. In addition to the four higher-profile taxing districts mentioned above, the remaining districts are the Channahon Police Department, Joliet Junior College, Three Rivers Library District, Minooka Fire Protection District, Aux Sable Township, and the Aux Sable Highway Department. The respective boards of all ten taxing bodies have formally approved the property tax settlement agreement.

Initial discussions began among school superintendents Al Gegenheimer and Jim Colyott and Aux Sable Liquid Products President & Chief Executive Officer W. J. “Bill” McAdam in late 2010. McAdam, Gegenheimer and Colyott led the efforts to develop a mutually acceptable settlement framework that met the needs of all parties.

Over 2011-2012, Gegenheimer and Colyott played key roles in working with representatives of the other taxing bodies to shape and secure support for the final settlement agreement. This final agreement provides a stable and predictable property tax base that is good for all parties.

It provides incentives for long lead time capital investments that Aux Sable is developing to expand its business in Channahon.

The village of Channahon, led by President Joe Cook, also played a key role in ensuring that all existing agreements were modified to be consistent with the new 10-year settlement agreement.

“Aux Sable is very pleased to finalize this agreement with the taxing bodies as it now allows us to better plan our future expansion and growth opportunities here at our Channahon location,” said Aux Sable President & CEO Bill McAdam. “Also, this agreement will result in a more-positive and constructive relationship with the school districts, the village of Channahon, Grundy County and the other taxing districts. Aux Sable is proud of its business and the role it plays in the Channahon business community.”

“The signing of this agreement is in the best interest of both the school district and the community,” Superintendent Gegenheimer said. “This deal allows our district and the other taxing bodies the ability to better plan their respective budgets for many years to come.”

“We are extremely excited about the stability this deal offers to both Aux Sable and our district,” Superintendent Colyott said. “Minooka High is securing the future tax income of the district.”

“We are happy that a resolution has been reached through negotiations. The agreed settlement offers a continuing financial benefit to the taxing bodies and sustains liability to Aux Sable Liquid Products,” Channahon Village President Joe Cook said.

About Aux Sable USA / Aux Sable Liquid Products (ASLP)

Located in Channahon, Ill., ASLP is one of the largest NGL extraction and fractionation plants in North America. The facility is capable of processing 2.1 BCFD of gas and produces 102,000 barrels of NGL products per day. All of the NGLs shipped on the Alliance Pipeline are processed at ASLP’s NGL facility.

The Channahon facility is connected to major Midwest pipelines including Oneok Pipeline, Buckeye Pipeline, and Enterprise. Aux Sable Channahon has also constructed a 159-spot railcar staging yard to optimize the flow of product in and out of the plant. The yard is serviced by a proprietary rail group using a switching locomotive. Daily delivery of cars from the Canadian National makes us a strategic shipping location for NGLs.

About Aux Sable Midstream (ASM)

Located in Tulsa, Okla., Aux Sable Midstream oversees the North Dakota operations of the Palermo Conditioning Plant and the Prairie Rose Pipeline. The Prairie Rose Pipeline connects the Palermo Plant to the Alliance Pipeline, which collects and delivers high-energy, dense-phase gas to the Channahon plant for processing.

ASM is pursuing other NGL processing and infrastructure initiatives, primarily driven by the shale oil and shale gas developments in the Midwest and Northeast United States.

Aux Sable is owned by Enbridge Inc. (42.7 percent equity interest), Veresen Inc. (42.7 percent equity interest) and Williams Partners (14.6 percent equity interest). Enbridge Inc. and Veresen Inc. each own a 50-percent interest in the Alliance Pipeline.

For more information on Aux Sable, visit

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