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HomeMy WebLinkAbout20101779.tiff tl - Coir State of Colorado Bill Ritter,Jr.,Governor . ^ �J c 7 Department of Local Affairs -�� * (' Susan Kirkpatrick,Executive Director 4 7s DIVISION OF PROPERTY TAXATION A4O q1O÷ LU:u i..:; -2 /.y ri_ 33 JoAnn Groff,Property Tax Administrator FRTY TKA TO: County Commissioners FROM: JoAnn Groff Property Tax Administrator SUBJECT: 2010 Final County Notice of Valuation for State Assessed Properties Plus August 2010 Protest Narrative for County Assessors DATE: July 30, 2010 MEMORANDUM Enclosed are the final 2010 valuations for state assessed companies. Companies with values that are different from the values listed on the July 1 NOV have been marked with an asterisk, 66*». Companies that have been assigned a "Best Information Available" (BIA) assessment will have the BIA notation next to their names. The values listed on the enclosed notice must be included in the values certified to taxing entities in August and on your 2010 Abstract of Assessment. The July 30 Final Notice of Valuation includes the following categories: Category Description • $Assessed: This category consists of the assessed value of the real and personal property. • $Actual: This category is the actual value of the real and personal property. • 5.5 % Limit: This column contains information on the assessed value of the newly constructed real property and associated personal property. The value is reported on abstracts of assessment, and it is reported on certifications of value as new construction for the 5.5 percent property tax limit. • Tabor Actual: This column shows the actual value of newly constructed real property. This value is reported on certifications of value as new construction for the TABOR Local Growth calculation. If you disagree with the final valuation of a company that you timely protested in July 2010, you may appeal to the Board of Assessment Appeals or the Denver district court, 39-4-108(8), C.R.S. Such appeals must be filed within 30 days of the date of the final notice of value, 39-2-125 and 24-4-106, C.R.S. For questions about values reported on this notice, please contact the appraiser directly, or through 303-866-2371. For questions on the application of new construction, please contact Greg Schroeder at 303-866-2681 or qreq.schroederstate.co.us. Corr vvAA.. 2010-1779 q is Cc thk, crl ;z_ 3 l� 1313 Sherman,Room 419,Denver,CO 80203,(303)866-2371 hnp.//dola.colorado.eov FAX(303)866-4000 —w STATE ASSESSED PROPERTIES SECTION PROTEST NARRATIVE FOR COUNTIES JULY 30, 2010 TABLE OF CONTENTS POSSIBLE DISTRICT COURT OR BAA APPEALS 2 STATUS OF PRIOR YEARS BAA FILINGS 2 BEST INFORMATION AVAILABLE (BIA) ASSESSMENTS 2 CHANGES WITHOUT A PROTEST 3 COUNTY PROTESTS 3 COMPANY PROTESTS 9 ADDRESS LIST CHANGES 12 OVERVIEW OF THE 2010 VALUATION SEASON This document contains the Division of Property Taxation State Assessed Section's (SA) explanations and responses to company and county protests of 2010 valuations. If additional review is needed, county assessors may schedule a time in the August through December time period to come to Division offices to review SA valuation files and/or consult with a SA appraiser. Final assessed value changes from the July 1 — July 15 formal protest period have been included in the industry-based table below: STATE ASSESSED COMPANIES ASSESSED VALUATION BY COMPANY (COMPARISON 2009 TO 2010) Final July 30 NOV 2009-2010 INDUSTRY 2009 2010 DIFFERENCE AIRLINE COMPANIES $416,943,200 $392,562,900 ($24,380,300) -5.8% ELECTRIC COMPANIES $1,072,150,100 $1,183,165,300 $111,015,200 10.4% AFFLIATED POWER PRODUCERS-Non Renewable $305,588,200 $315,796,900 $10,208,700 3.3% AFFLIATED POWER PRODUCERS-Renewable $73,523,900 $64,451,600 ($9,072,300) -12.3% RURAL ELECTRIC COMPANIES $521,553,400 $543,899,600 $22,346,200 4.3% DISTRIBUTION PIPELINE COMPANIES $51,251,900 $58,702,800 $7,450,900 14.5% FLUID PIPELINE COMPANIES $48,384,900 . $80,890,200 $32,505,300 67.2% TRANSMISSION PIPELINE COMPANIES $696,586,500 $763,212,700 $66,626,200 9.6% RAILROAD COMPANIES $353,073,700 $384,697,500 $31,623,800 9.0% FACILITY BASED TELEPHONE COMPANIES $931,884,900 $921,151,600 ($10,733,300) -1.2% MOBILE TELEPHONE COMPANIES $353,479,500 $381,205,800 $27,726,300 7.8% RURAL TELEPHONE COMPANIES $52,414,700 $52,302,800 ($111,900) -0.2% TELEPHONE RESELLER COMPANIES $13,301,100 $14,607,900 $1,306,800 9.8% WATER COMPANIES $1,146,800 $509,800 ($637,000) -55.5% CARLINE COMPANIES $70,074,500 $56,766,908 ($13,307,592) -19.0% $4,961,357,300 $5,213,924,308 $252,567,008 5.1% County Protest Narrative—July 30, 2010 1 POSSIBLE DISTRICT COURT OR BOARD OF ASSESSMENT APPEALS (BAA) This table represents companies or representatives that protested and did not receive the changes they asked for, or want to provide more data to support their position. Comments are back in the respective Industry Protest section of this document. 2010 CURRENT YEAR Company i Account Blue Spruce EN051 Plains End II EN387 United Airlines AL049 Southwest Airlines AL300 Skywest Airlines AL561 ExpressJet Airlines AL015 JetBlue Airlines __ AL700 Federal_Express AL020 NuStar PF322 DCP Wattenberg PF312 STATUS OF PRIOR YEARS APPEALS (BAA or DISTRICT COURT) These companies continue to have active appeals with the Board of Assessment Appeals (BAA). ............ Prior Years Company Year Status Blue Spruce(EN051) • 2009 Pending at BAA Southwest Airlines (AL300) 2009 Trial Date October 4-7 at District Court ExpressJet Airlines (AL015) 2009 Pending at BAA Federal Express Corporation (AL020) 2009 Pending at BAA United Airlines (AL049) 2009 Pending at BAA JetBlue Airways (AL700) 2009 Pending at BAA Qwest Corporation (TL393) 2009 Motion to Dismiss Granted (Currently Being Appealed) BEST INFORMATION AVAILABLE (BIA) ASSESSEMENTS LOOK FOR COMPANY NAMES FOLLOWED BY "(BIA)" ON YOUR COUNTY NOTICE OF VALUATION. These companies have failed to file. Pursuant to § 39-4-103 (1.5)(c), C.R.S., these companies are deemed to have waived any right to file an abatement or refund petition. Company Account _ AirNet Systems, Inc. AL ' 776 Global Capacity Group Inc TX 178_ Gold Line Telemanagement Inc TX 170 Main Street Telephone Company TX 260 Net2Phone TX t 643 Network Communications TX 112 Network US, Inc. TX 139 Ponnequin Acquisitions, LLC EG 472 Prairie Water Company, LLC. WA 023 Telecare, Inc. TX 137 Utah Railway Company RR 388 County Protest Narrative—July 30, 2010 2 Vonage Networks Inc TX 1410 Westel, Inc. ; TX 433 CHANGES WITHOUT A PROTEST LOOK FOR COMPANY NAMES FOLLOWED BY AN ASTERISK "*" ON YOUR COUNTY NOTICE OF VALUATION. THESE COMPANIES HAD EITHER A VALUATION OR AN APPORTIONMENT CHANGE. PC295 —Western Fuels Association - The company provided specific route county percentages for apportionment that were deemed incorrect. The default apportionment was applied as in prior years. PC944 - SC Rail Leasing - Adams, Baca, Douglas, Larimer, Las Animas, and Pueblo Counties had a small increase due to a company error. Only these counties are tagged for the change with an asterisk on the July 30 NOV. PC986 — Macquarie Rail Inc - Company filing error resulting in a $100 decrease in some counties tagged with the asterisk. PC944— Basell USA, Inc - Company filing error resulting in a $100 decrease in some counties tagged with the asterisk. PC692 —Arizona Electric Power Coop - Value decrease due to cars and mileage with the AZPX mark removed from the fleet during 2010. We will inquire as to the current control of those cars for an omitted property assessment before the end of the year. TX182 — Comtel Telcom Assets LP — It was determined that this company operates as a telephone reseller and not as a fixed based telecom. The apportionment was moved from Arapahoe to Denver County. Apportionment is based on customer count. Since none was provided it was defaulted into Denver County. TX 187-iNetworks Group - ASOP amended for customer count correction. Colorado value decreased. TX 112- Network Communications - Initially BIA. Subsequent ASOP filed, value decreased. PT 335 Northwest Pipeline Corporation - ASOP amended for correction in apportionment. COUNTY PROTESTS LOOK FOR COMPANY NAMES FOLLOWED BY AN ASTERISK "*" ON YOUR COUNTY NOTICE OF VALUATION. THESE COMPANIES HAD EITHER A VALUATION OR AN APPORTIONMENT CHANGE. ARAPAHOE COUNTY TL369 - AT&T Communications Services — For the Arapahoe County apportionment, AT&T was assessed at $2,077,300 in 2009, for 2010 the assessed value changed to $1,741,200. County Protest Narrative—July 30, 2010 3 AT&T value dropped because it was the fifth straight year of income decline. Imputed intangible value was removed for intangibles that where associated outside the fiber portion of the company. The assessment for 2010 is based on the cost approach. The apportionment to Arapahoe County fell from 5.5 percent to 5.3 percent. Colorado's portion of the system value also fell from 1.8 percent to 1.7 percent. Colorado's portion of the system value fell from $129,469,139 to $114,274,140. TX115 - Paetec Communications - Increased apportionment to Arapahoe County to $205,100 assessed. Change based on customer count. Apportionment changed to several counties. Affected counties are: Adams, Arapahoe, Boulder, Broomfield, Chaffee, Cheyenne, Denver, Douglas, Eagle, El Paso, Grand, Jefferson, La Plata, Larimer, Mesa, Montrose, Park, Pitkin, Pueblo, Routt, San Miguel, Summit, and Weld. TX 545-Liberty Bell Telecom — County questioned why there was no apportionment to Arapahoe County for this company. New information provided by the company showed that some value should be apportioned to Arapahoe. EL PASO COUNTY AL020 — Federal Express Corp. —The company also protested 2010, and we have not resolved 2009 BAA filing. Incomplete filings and questionable data are the major obstacles. Resolution is awaiting more complete information that has been promised by the company. LAKE COUNTY TR473 - Century Tel of Eagle —Why an apportionment to Lake County? Upon review, it was determined that the apportionment numbers for Lake and La Plata were reversed. LA PLATA COUNTY TR473 - Century Tel of Eagle - Why is there no apportionment to La Plata County? Upon review, it was determined that the apportionment numbers for Lake and La Plata were reversed. ER079 - La Plata Electric Assn., Inc.- County questioned inclusion of CIAC in obsolescence applied to the cost approach. Economic obsolescence is calculated based on the rate of return applied to income production and total operating property relationship. County questioned lack of new construction reported. New construction numbers are added only if real property and associated personal property have been placed in service prior to the January r lien date. Subsequent conversations with the company reconfirmed that no new construction was completed in 2009. LOGAN COUNTY TL369 - AT&T Communications — The AT&T apportionment to Logan County was assessed at $268,900 in 2009, and declined to $258,900 for 2010. AT&T value dropped because it was the fifth straight year of income decline for AT&T. Imputed intangible value was removed for intangibles that where associated outside the fiber portion of the company. The assessment for 2010 is based on the cost approach to value. The apportionment to County Protest Narrative—July 30, 2010 4 Logan County fell from 1.0 percent to 0.8 percent. Colorado's portion of the system value also fell from 1.8 percent to 1.7 percent. Colorado's portion of the system value fell from $129,469,139 to $114,274,140. TL390 - MCI Communications, Inc. - Colorado's portion of the system dropped this year from $137.9 million to $131.5 million due to a large CWIP deduction taken by MCI this year. The income for this company is still negative for the 4th year in a row. Logan County's apportionment fell from 0.3 percent to 0.2 percent this year. MCI value fell in Logan County from $101,700 assessed to $72,400 assessed. TL372 - Value-Added Communications, Inc. - This company supplies telephones and telephone equipment to jails. The apportionment changed due to a new contract with the State of Colorado. Old equipment was removed from various sites and counties. The taxpayer does not anticipate another significant change in the future. EG685 - Ridgecrest Wind Partners, LLC - There are 33 wind turbines at this location. The value declined for one additional year of depreciation (5%) along with the capital cost threshold factor falling from $576 to $533 per Kw. Wind farms are valued on a 20 year life. The property is 10 years old and thus is 50 percent depreciated. This decreased from last year when the property was 57.5 percent good. EN405 - Peetz Logan Interconnect - Logan County is questioning why there is no value increase when there are 200 new turbines. This assessment is for the interconnection or transmission line only. There are no wind turbines under this account. EG161 - Peetz Table Wind Energy - Peetz Table Wind Energy went into operation in 2007. It consists of 133 - 1.5 MW GE Turbines that produces 199.5 MW of energy. Variable factors that affect value each year are: mill levy, capacity factor, capital cost threshold factor, and revenues for the prior year. Significant changes occurred this year with the threshold factor and the revenues. The threshold factor fell 11 percent and the revenues dropped 6 percent. This resulted in a net drop of 7 percent overall to the property value. EG386 - Logan Wind Energy - Logan Wind Energy consists of 134 - 1.5 MW GE Turbines and produces 201 MW of energy. This facility had a 4 percent drop in revenue for the prior year. Variable factors that affect value each year are: mill levy, capacity factor, capital cost threshold factor, and revenues for the prior year. Significant changes occurred this year with the threshold factor and the revenues both declining. The threshold factor fell 11 percent. This resulted in a 7 percent overall drop to the property value. EG316 - Northern Colorado Wind Energy, LLC (NCWE) - NCWE consists of 81 turbines. Sixty-six (66) turbines are Siemens 2.3 MW and 15 turbines are GE 1.5 MW. Total MW produced are 151.8 and 22.5. This facility is new for 2010. These turbines went into operation in August 09 and October 2009, respectively; therefore, a considerable value increase can be anticipated for next year based on a full year of operation. This facility operates as Northern Colorado Wind under the Peetz companies. Value added for Tabor and 5.5 Limit for the July 30, 2010, NOV. EG205 - Spring Canyon Energy - This property includes 40 turbines. Operations commenced in Feb. 2006. Variable factors that affect value each year are: mill levy, capacity factor, capital cost threshold factor, and revenues from the prior year. Although the capital cost threshold and the prior year's revenue dropped, these was offset by changes in the capacity factor and the PPA, so that the net result was a six percent increase. County Protest Narrative—July 30, 2010 5 EG007 — Ormat Technologies, Inc. - This is a new company for 2010 that did not report to the Division in April. This property was discovered by the Logan County Assessor. The Division has valued this company and the first Notice of Value will be sent out July 30th. This property utilizes renewable energy generated as a byproduct of pipelines: recovered energy based. This facility produces 3.7 MW of energy. RR 107 NE, KS &CO Railnet. Inc.- Q: Why is this RR value down when all the others showed an increase? A: This value was down because it reported declining income. PT 399 Overland Pass Pipeline - The county question the 2010 decline in apportionment to Logan County. The company's system value increased, but the value allocated to Colorado declined because of new construction outside of the state. The allocation to Colorado declined from 32.3% to 22.9%. The value apportioned to Logan County also declined from 5.8% to 2.5% because of new construction in Moffat and Rio Blanco Counties. PT056 Rockies Express - The county questioned the 2010 decline in apportionment to Logan County. The company's system value increased, but the value allocated to Colorado declined because of new construction outside of the state. The allocation to Colorado declined from 12.6% to 9.0%. The value apportioned to Logan County also declined from 18.1% to 16.0% because of new construction in Moffat County. Q- Logan County questioned the 2009 to 2010 loss in value from following companies: TX571 Bullseye Telecom TX410 Vonage Networks TX167 Easton Telecom TX022 lonex Communications TX348 Telemanagement Systems In all cases, there were no customers reported in Logan County for 2010. TX 404- Phillips County Communications, LLC. The county questioned the loss in value compared to '09. County apportionment was revised based on net operating property rather than on customer count resulting in some value being apportioned to Logan County. TR 482 The Peetz Co-operative - The County questioned the 2009 to 2010 the drop in value. The system value increased slightly however the Colorado allocation was offset by CWIP. P. TR 478 The Haxtun Telephone Company- The County questioned the 2009 to 2010 drop in value. The company had negative income the prior two years resulting in a value decline. TM459 — USA Mobility Wireless - The Company has excess capacity and has implemented a plan to manage network capacity and to improve network efficiency by consolidating subscribers onto fewer, higher capacity networks with increased transmission speeds. This plan is referred to as network rationalization. Network rationalization will result in fewer networks and therefore fewer transmitter locations. Active transmitters declined 17.5% year over year. Transmitters were also moved to new sites. MESA COUNTY TL369 - AT&T Communications Services - AT&T was apportioned to Mesa County at an assessed value of$257,500 in 2009 and decreased to $201,200 for 2010. The AT&T value County Protest Narrative—July 30, 2010 6 dropped because it was the fifth straight year of income decline. Imputed intangible value was removed for intangibles that where associated outside the fiber portion of the company. The assessment for 2010 is based on the cost approach to value. The apportionment to Mesa County fell from 5.5 percent to 5.3 percent. Colorado's portion of the system value also fell from 0.7 percent to 0.6 percent. Colorado's portion of the system value fell from $129,469,139 to $114,274,140. TL390 - MCI Communications Services — Colorado's portion of the system dropped this year from $137.9 million to $131.5 million mostly due to a large CWIP deduction taken by MCI. Their income is still negative for the 4th year in a row. Mesa's apportionment fell from 1.3 percent to 1 percent this year. MCI value fell in Mesa County from $504,100 assessed to $365,600 assessed. TX629-Qwest Long Distance Company—The county asked why the value declined compared to 2009. In fact there was in increase in value. TR473 CenturyTel of Eagle - Assessor requested explanation regarding the drop in value. CenturyTel of Eagle had a drop in NOI from '09 to '10. Total Private Carline Assessment - Assessor commented on a 40% drop in total private carline assessment. The year to year table on the first page shows a 19% drop in carline assessment. Union Pacific's carline mileage report has 30.6% fewer miles than last year. Burlington Northern's carline mileage report has 9.5% fewer miles than last year. Mesa County only has Union Pacific track. Nearby counties with only Union Pacific track varied between 30% to 40%. Nothing changed in the methodology or track apportionment tables from last year. With the total drop in miles, I assume more companies fell below the 10,000 miles required for assessment. Track table apportionments below 10,000 miles generally round to $0 because the assessed value per county is below $100. MOFFAT COUNTY ER086 Salt River Project— County requesting ASOP and work papers. Reviewed imputed income and imputed rate of return. No further appeal. ER093 Tri State - County requesting ASOP and work papers. Assessor will not pursue appeal. PT 399 Overland Pass Pipeline - The County indicated that there was new pipeline in 2009. New real estate construction has been acknowledged by the company and new construction was added. PT056 Rockies Express - The County indicated that there was new pipeline in 2009. New real estate construction has been acknowledged by the company and new construction was added. MONTROSE COUNTY ER093-Tri State Generation and Transmission - Questioning decrease from 09— Clarified that there was actually an increase. PT679-Rocky Mountain Natural Gas- Questioning decrease from 09'. The Company had a significant drop in income from 2009. County Protest Narrative—July 30, 2010 7 MORGAN COUNTY TR496- Wiggins Telephone Assoc.- Question the use of 100% Cost Approach and the increase in actual value. The company had a negative income, yet the NOP doubled; therefore, the cost approach was the better indicator of value. PHILLIPS COUNTY Private Carlines — Nebraska Public Power District (PC222) does not report any miles on the NKCR route. NKCR also does not report any NPPD miles. Railwest US (PC392) probably is misreporting; the NKCR does not report any miles for Railwest US. NKCR reports 812 miles of travel by TTX cars. That would be about $45 of assessed value that would be split with Logan County. We have the 812 miles in the larger statewide TTX assessment. Any NKCR owned cars are included in the NKCR assessment. Railroad owned cars have three letters for their car mark. Look for car marks that have three or four letters with the last being X. Those are the private carlines. We can look into it further if you can specify car marks for next year. TR483 Phillips County Tel CO- The County indicated that they had completed a fiber installation and remodel of the main office. Additionally, the county questions the decline in the value. The value declined was because of a drop in income. The fiber was installed but was not yet in service on January 1st. PARK COUNTY ER077 Intermountain Rural Electric Q: New Construction missing? Yes. Revised on on 7/7/2010. RIO BLANCO COUNTY PT 399 Overland Pass Pipeline- The County indicated that there was new pipeline in 2009. New real property construction has been acknowledged by the company and the new construction amounts were added. SEDGWICK PT056 Rockies Express- The County questioned the 2010 decline in value. The company's system value increased, but the value allocated to Colorado declined because of new construction outside of the state. The allocation to Colorado declined from 12.6% to 9.0%. The value apportioned to Sedgwick County also declined from 19.2% to 17.50% because of new construction in Moffat County. TELLER COUNTY Q- County questioned 2009 to 2010 loss in value from following companies: TX022 lonex Communications TX545 Liberty Bell Telecom, LLC TX613 Tri-M Communications, Inc. In all cases, there were no customers reported in Teller County for 2010. County Protest Narrative—July 30, 2010 8 TX410 Vonage Networks- No ASOP received-BIA-All value placed in Denver County. COMPANY PROTESTS LOOK FOR COMPANY NAMES FOLLOWED BY AN ASTERISK """ ON YOUR COUNTY NOTICE OF VALUATION. THESE COMPANIES HAD EITHER A VALUATION OR AN APPORTIONMENT CHANGE. AIRLINE COMPANIES (AL) AL015 - ExpressJet - No change; the company has a BAA filing for 2009 and may file with the BAA for 2010. AL700 - JetBlue — We lowered the value after comparing the aircraft net book values with the Airliner Price Guide. The company has a BAA filing for 2009 and may file with the BAA for 2010. AL561 - SkyWest Airlines - No change; the company may file with the BAA. AL300 - Southwest Airlines - No change; the company has a Denver district court filing for 2009 and will likely appeal the 2010 valuation as well. AL005 —American Airlines — No change. AL741 — American Eagle Airlines — No change. AL049 — United Airlines - No change; the company has a BAA filing for 2009 and may file with the BAA for 2010. AL020 - Federal Express Corp. — No change; the company has a BAA filing for 2009 and may file with the BAA for 2010. AL737 —Airtran Airways - No change; the tax representative may file with the BAA. AL952 — Frontier Airlines —We lowered the value after comparing the aircraft net book values with the Airliner Price Guide. The tax representative may file with the BAA. AL742 — Lynx Aviation - No change; the tax representative may file with the BAA. AL717 — Republic - No change; the tax representative may file with the BAA. AL765 — Shuttle America - No change; the tax representative may file with the BAA. ELECTRIC COMPANIES - MAJOR ELECTRICS (EL): No formal protests on major electric companies. County Protest Narrative—July 30, 2010 9 ELECTRIC COMPANIES - ENERGY COMPANIES (EN): EN317 - Plains End - Company withdrew its protest prior to its formal hearing on July 12, 2010. EN387 - Plains End II - Taxpayer opinion of value is $39 Million. No value change from July 1, NOV. Anticipate taxpayer to file at the Board of Assessment Appeals or District Court. EN318 - Thermo Greeley - Company protested its valuation based on the plant is anticipated to be stranded in May of 2011. It is without a contract from Xcel. The value was reduced from the July 1, 2010, CO actual value of $3,433,240 to $1,283,221 because there is no new Power Purchase Agreement for this plant. EN746 - Thermo Power and Electric - This was an administrative hearing for Thermo Power and Electric. The company protested its value based on the Payment in Lieu of Taxes (PILT) - $250,000 per year. The Thermo facility provides all of its electrical output to Public Service Company of Colorado (PSCo) under a Power Purchase Agreement (PPA) that expires in 2013. It also sells hot water to the University of Northern Colorado (UNC) pursuant to a thermal supply agreement. Both agreements are set to expire in August 2013. The DPT attempted to obtain a copy of the PILT agreement. The PILT agreement from discussions with former DPT employee and file notes was signed sometime in the late 1980s early 1990s. We were not able to locate such an agreement. For 2010, the valuation is moved back to a more traditional valuation approach. The company has not been able to secure a new PPA when the existing one expires. This value is expected to continue to decline as the expiration date for the existing PPA gets closer. Last year's assessment was $3,321,800 but was reduced to $2,304,100 for 2010. The property ownership changed in 2006. EN522 - Fountain Valley Power- Fountain Valley protested its value concerning this plant's power purchase agreement ending on September 11, 2012, and its inability to secure a new Purchase Power Agreement (PPA) or find a buyer for its property. The formal hearing took place on July 15, 2010. Based on this information, the July 30, 2010 Colorado actual value is reduced to $108,490,600, which is roughly the same as last year. EN051 - Blue Spruce - Formal hearing date: July 20, 2010. No value change was made. We are waiting on additional information from Blue Spruce. We anticipate Blue Spruce to file at the Board of Assessment Appeals or District Court. ELECTRIC COMPANIES - RURAL ELECTRICS (ER): No formal protests on rural electric companies. PIPELINES - DISTRIBUTION (PD): No formal protests on distribution pipeline companies. PIPELINES — FLUID (PF): PF322 Nustar-Adjusted NOP and NOI to account for the sold property resulting in a decline in value. County Protest Narrative—July 30, 2010 10 PF 319 Mid-America- Allocation to Colorado was corrected to reflect barrel mile and inch mile indicators resulting in a decline in value to Colorado. PF 312- DCP Wattenberg - No change because the value was based on the recent sale transaction; the company may appeal. PIPELINES - TRANSMISSION (PT): PT679 Rocky Mountain Natural Gas- Adjusted value based on amended ASOP that reported CWIP. RAILROAD COMPANIES (RR): RR 361- Union Pacific- Company requested that more weight be placed on the income approach in the reconciliation. No adjustment was made. TELECOMMUNICATIONS - FACILITIES BASED COMPANIES (TL): TL569 - 360 Networks - Company protested in July 1, 2010, valuation. Company withdrew its protest prior to its July hearing date. TL642 - Century Tel Fiber - Century Tel protested its value for 2010. The company had an increase in value this year. The increase was due to a large CWIP deduction taken last year of plant that was put into service this year. Petition for reduction was denied. Century Tel is now looking into a reduction based on dark fiber and may file an appeal in August. The company states that a lot of its fiber is dark, meaning not it use. If Century Tel provides documentation for the dark fiber, this may open it up for abatements going back to 2007. TELECOMMUNICATIONS - MOBILE TELEPHONES (TM): TM449 —T-Mobile West Corp — Is asking for a reduced valuation primarily because of their view that the FCC licenses, exempt in Colorado, have a greater value than that deducted by the Division. A reduction in Colorado value was agreed to because of a decline in both property and income in Colorado. TELECOMMUNICATIONS - RURAL TELEPHONES (TR): TR484- The Pioneer Telephone Association, Inc.- Adjusted the allocation to Colorado based on a 50-50 weighting between customers and property. TELECOMMUNICATIONS - TELEPHONE RESELLERS (TX): TX785 — New Global Telecom — The original 2010 value was based on a BIA assessment and the value assigned to Denver County. Subsequent research and conversations with the company indicated that it no longer qualified as a public utility and should be valued locally by Jefferson County. County Protest Narrative—July 30, 2010 11 WATER COMPANIES (WA): No formal protests on water companies. PRIVATE CARLINE COMPANIES (PC): No formal protests on private carline companies. ADDRESS LIST CHANGES TX091 — Cincinnati Bell Any Distance. The new address is in the enclosed address list. PC142 - Delta Tank Line Co. The new address is in the enclosed address list. PC201 - Schlumberger Tech Corp was in the address list incorrectly under the name Well Services. The address was correct. PC177 — City of Lansing Board of Power and Light was in the address list incorrectly under the name Lansing Board of Power and Light. The company name of the NOV was also changed from City of Lansing, By It's Board of Power and Light, to the above. The address was correct. Please review the names and addresses currently on your system with the new July 30, 2010, listing. We have listed above the changes that we are certain of. If desired for billing purposes, the treasurer may change the address to a tax representative's address but should leave the company name as listed in the NOV County Protest Narrative—July 30, 2010 12 Colorado State Assessed Property Final Notice of Valuation - County Summary July 30, 2010 WELD ID Company Name $Assessed $Actual 5.5%Limit Tabor Actual TL 569 360Networks(USA), Inc $35,800 $123,400 $0 $0 TL 570 AboveNet Communications, Inc $61,500 $212,100 $0 $0 TX 725 Access One, Inc. $100 $300 $0 $0 TX414 ACN Communications Services _ $20,300 $70,000 $0 $0 TL 369 AT&T Communications, Inc. $1,938,200 $6,683,400 $0 $0 TM439 AT&T Mobility and New Cingular $1,677,900 $5,785,900 $0 $0 PD306 Atmos Energy Corporation $7,980,500 $27,519,000 $0 $0 ER067 Basin Electric Power Coop $832,100 $2,869,300 $0 $0 TX524 BCN Telecom, Inc $600 $2,100 $0 $0 TX 571 Bullseye Telcom, Inc. $1,000 $3,400 $0 $0 RR345 Burlington Northern&Santa Fe Railway Company $6,889,800 $23,757,900 $0 $0 TL 572 Cbeyond Communications, Inc. $5,500 $19,000 $0 $0 EG385 CCWE Holdings, LLC.dba Cedar Creek Wind $16,770,700 $57,830,000 $0 $0 PT324 Cheyenne Plains Gas Pipeline Co., LLC $32,708,700 $112,788,600 $0 $0 TX 091 Cincinnati Bell Any Distance, Inc. $2,200 $7,600 $0 $0 PT 328 Colorado Interstate Gas Company $50,350,200 $173,621,400 $0 $0 TL 370 Comcast IP Phone II,LLC $170,300 $587,200 $0 $0 TX 540 ComTech 21 LLC $100 $300 $0 $0 TM662 Cricket Communications Inc $401,600 $1,384,800 $0 $0 PF 312 DCP Wattenberg Pipeline fka Buckeye NGL Pipe Line fka BP $378,900 $1,306,600 _._ $0 $0 TL 133 DIECA dba Covad Communications Co $600 _.. $2,100 $0 $0 TX 167 Easton Telecom Services,LLC. $1,800 $6,200 $0 $0 TL 159 Evercom Systems,Inc. $33,000 $113,800 $0 $0 AL 020 Federal Express Corp. $17,400 $60,000 $0 $0 TX 440 Futurum Communications Corporation $600 $2,100 $0 $0 TX 157 Go Solo Technologies, Inc. $6,200 $21,400 $0 $0 RR355 Great Western Railway of Colorado $1,709,800 $5,895,900 $0 $0-- ER827 Heartland Consumer Power District $78,700 $271,400 $0 $0 ER085 High West Energy fka Rural Elec $184,100 $634,800 $0 _ $0 ER075 Highline Electric Assn. $7,700 $26,600 $0 $0 TX 257 Iloka dba Microtech-Tel $2,400 $8,300 $0 $0 TX 022 lonex Communications North Inc(fka: Birch) $2,200 $7,600 $0 $0 PT 675 Kerr-McGee Gathering LLC $55,180,600 $190,277,900 $0 $0 PT 920 KM Interstate Gas Transmission LLC $20,882,300 $72,007,900 $0 $0 TL 500 Level3 Communications,LLC $451,300 $1,556,200 $0 $0 TX 545 Liberty Bell Telecom,LLC $6,600 $22,800 $0 $0 TX 612 Lightyear Network Solutions, LLC $500 $1,700 $0 $0 ER825 Lincoln Electric System $134,800 $464,800 $0 $0 TX 762 Matrix Telecom, Inc $4,300 $14,800 $0 $0 TL 390 MCI Communications Services, Inc. $184,800 $637,200 $0 $0 TL 368 McLeodUSA Telecomm Services,Inc. $161,200 $555,900 $0 $0 TX 865 Mitel NetSolutions fka Inter TelNet $38,900 $134,100 $0 $0 ER081 Morgan County Rural Elec Assn $1,197,500 $4,129,300 $0 $0 TM820 NE Colorado Cellular, Inc. $16,600 $57,200 $0 $0 TR481 Nunn Telephone Company $1,142,400 $3,939,300 _.. $363,400 $1,143,500 TX037 Orbitcom,Inc. $600 $2,100 $0 $0 PT 399 Overland Pass Pipeline Company LLC* $12,750,200 $43,966,200 $0 $0 TX 115 PAETEC Communications,Inc.' $7,300 $25,200 $0 $0 EG472 Ponnequin Acquisitions LLC(BIA) $1,375,000 $4,741,400 $0 $0.._. 7/29/2010 WELD Page 1 of 2 ID Company Name $Assessed $Actual 5.5%Limit Tabor Actual ER084 Poudre Valley Rural Electric Assn. $4,374,500 $15,084,500 __. $0 $0 TX 347 Primus Telecommunications, Inc. $1,800 $6,200 $0 $0 EL 064 Public Service Company of Colorado $117,990,100 $406,862,400 $0 $0 TL 923 Qwest Communications Corporation $50,600 $174,500 $0 $0 TL 393 Qwest Corporation $26,190,000 $90,310,300 $0 $0 TX 629 Qwest Long-Distance Company $139,300 $480,300 $0 $0 PT 056 Rockies Express Pipeline LLC $26,755,200 $92,259,300 $0 $0 EN 052 Rocky Mountain Energy Center, LLC $66,745,500 $230,156,900 $0 $0 PT 679 Rocky Mountain Natural Gas Company* _ $16,300 $56,200 $0 $0 PF 588 Rocky Mountain Pipeline Systems LLC $1,083,600 $3,736,600 $0 $0 TR487 Roggen Telephone Co-op $126,200 $435,200 $4,700 $3,100 PF 323 Sinclair Pipeline Company $101,600 $350,300 $0 $0 PD309 SourceGas Distribution LLC $1,402,200 $4,835,200 $0 $0 PT 334 Southern Star Central Gas Pipeline, Inc. $1,185,300 $4,087,200 $0 $0 TX 283 Speakeasy Broadband Services,LLC $1,000 $3,400 $0 $0 EN 165 Spindle Hill Energy.LLC $27,572,900 $95,079,000 $0 $0 TL 379 Sprint Communications Co LP $267,900 $923,800 $0 $0 TM611 Sprint Nextel Corp $1,600,800 $5,520,000 $0 $0 TR490 Stoneham Co-op Telephone $144,100 $496,900 $0 $0 PF 634 Suncor Energy(USA)Pipeline Company $4,210,000 $14,517,200 $0 $0 TX965 Telecom Management Inc. $1,100 $3,800 $0 $0 TX 575 Telecom North America, Inc.fka 3U $100 $300 $0 $0 EN867 Thermo Cogeneration Partnership,L.P. $22,432,700 $77,354,100 $0 $0 EN318 Thermo Greeley,LLC' $372,100 $1,283,100 $0 $0 EN746 Thermo Power and Electric,LLC.' $2,304,100 $7,945,200 $0 $0 TM449 T-Mobile West Corporation* $1,163,800 $4,013,100 $0 $0 PT 340 Trailblazer Pipeline Company $3,859,000 $13,306,900 $0 $0 TL 060 Transaction Network Services, Inc. $400 $1,400 $0 $0 TX613 Tri-M Communications, Inc _.. $1,700 $5,900 $0 $0 ER093 Tri-State Gen&Transm Assoc $8,275,500 $28,536,200 $0 $0 TL 408 tw telecom of colorado Ilc $200 $700 $0 $0 RR361 Union Pacific Railroad Company $14,157,800 $48,820,000 $0 $0 ER094 United Power, Inc. $11,936,400 $41,160,000 $0 $0 TM459 USA Mobility Wireless $32,300 $111,400 $0 $0 TM455 Verizon Wireless(VAW)LLC $4,722,000 $16,282,800 $382,800 $521,400 TX293 Via Talk, LLC $300 $1,000 $0 $0 TX 179 WDT World Discount Telecomm., Inc. $100 $300 $0 $0 ER833 Western Minnesota Municipal Power Agency $298,900 $1,030,700 $0 $0 PT 807 Westgas Interstate, Inc. $19,000 $65,500 $0 $0 PF 956 Westtex 66 Pipeline Co. $115,600 $398,600 $0 $0 PF 601 White Cliffs Pipeline,LLC $6,122,400 $21,111,700 $0 $0 TR496 Wiggins Telephone Association $285,300 $983,800 $0 $0 TX527 Windstream Comm. Inc.fka Alltel $400 $1,400 $0 $0 TX 618 Working Asset Funding Service, Inc, $36,500 $125,900 $0 $0 PT343 Wyoming Interstate Company, Ltd. $11,180,600 $38,553,800 $0 $0 ER824 Wyoming Municipal Power Agency $28,700 $99,000 $0 $0 TL 456 XO Communications,Inc $10,500 $36,200 $0 $0 TOTALS $583,121,800 $2,010,764,700 $750,900 $1,668,000 7/29/2010 WELD Page 2 of 2 Colorado State Assessed Property - Private Carline Final Notice of Valuation - County Summary July 30, 2010 WELD ID Company Name $Assessed $Actual PC861 Ace Cogeneration Company $200 $700 PC099 ADM Transportation Co. $11,200 $38,600 PC930 AG Processing,Inc. $1,300 $4,500 PC877 AIG Rail Services, Inc. $1,300 $4,500 PC105 Alabama Power Company $14,800 $51,000 ............... PC596 Alliant Energy $600 $2,100 _.. _.. PC938 Allied Enterprises, Inc. $200 $700 PC109 American Electric Power Service Corp. $5,100 $17,600 PC418 American Railcar Leasing, LLC $15,900 $54,800 PC690 American Soda,LLC $7,500 $25,900 PC 181 AMG Resources Corp $100 $300 PC692 Arizona Electric Power Cooperative-AZEX* $700 $2,400 PC922 Arrendadora Nacional de Carros $200 $700 PC995 Atel Leasing Corporation $100 $300 PC681 Basell USA, Inc. $700 $2,400 PC904 BASF Corporation $300 $1,000 _.. PC010 BTMU Capital Corp. $1,900 $6,600 PC720 Bunge North America, Inc. $500 $1,700 PC 125 California Railcar Corp. $100 $300 PC998 Calumet Libricants, Inc. $200 $700 PC553 Cargill,Inc. _.__. $6,300 $21,700 PC232 Carmath, Inc. $1,600 $5,500 PC962 CCC Transport Company $200 $700 PC928 CEMEX $1,800 $6,200 PC859 Cenex Harvest States Cooperative $400 $1,400 PC604 Centennial Gas Liquids, LLC _.. _.._ $300 $1,000 __.. _... PC 131 Chevron Phillips Chemical Co. $1,500 $5,200 PC130 Chevron USA, Inc. $4,300 $14,800 PC132 Chicago Freight Car Leasing $10,300 $35,500 PC791 Citicorp Railmark, Inc. $7,900 $27,200 PC 177 City of Lansing Board of Water&Light $100 $300 PC934 CK Industries, Inc. $1,400 $4,800 PC188 Coffeyville Resources Nitrogen Fertilizers LLC $100 $300 __.. _.._. PC223 Colorado Lava $100 $300 _. PC336 Compass Capital Corp. $300 $1,000 PC212 Conagra Foods(MHC, Inc.) $1,200 $4,100 PC040 ConocoPhillips Company $4,600 $15,900 _. PC891 Consumers Energy Company(JSCX) $300 $1,000 PC881 Consumers Energy Company(NSTX) $100 $300 PC858 Consumers Energy Company(WSCX) $400 $1,400 PC702 Cryo-Trans, Inc. $4,100 $14,100 PC141 Crystal Car Line, Inc. $800 $2,800 PC908 CWR Transportation $200 $700 PC969 Dairyland Power Cooperative $100 $300 PC142 Delta Tank Line Co. $100 $300 _.. _..__. PC893 Detroit Edison Company $1,400 $4,800 PC273 Dow Chemical Co.&Union Carbide $1,700 $5,900 _. PC269 Eastman Chemical Company $1,500 $5,200 PC950 Energy Solutions, LLC $700 $2,400 _.. 713 012 01 0 WELD Page 1 of 4 ID Company Name $Assessed $Actual PC174 Entergy Gult States Louisiana, LLC $18,300 $63,100 PC939 Enterprise Products Operating,LLC $100 $300 PC124 EPIC $400 $1,400 PC148 Equistar Chemicals, LP $700 $2,400 PC942 Essex Hybrid Seed Company $100 $300 _. PC889 Everest Railcar Services $100 $300 PC715 Excel Railcar Corporation $1,500 $5,200 PC 100 Exelon Generation Company, LLC $200 $700 PC 151 Exxon Mobil Corporation $1,400 $4,800 PC884 Fast Track Leasing, LLC $100 $300 PC519 Fayette Power Project $54,000 $186,200 PC220 First Union Rail Corporation _.._ $69,600 $240,000 PC915 FirstEnergy Generation Corp. $1,800 $6,200 PC718 Flex Leasing, LLC $2,900 --- $10,000 _.. PC521 FMC Corporation $2,600 $9,000 _.._ PC156 Formosa Transrail Corp. $500 $1,700 PC699 GATX $500 $1,700 PC162 GATX Corporation $68,100 $234,800 _. _.._. PC499 GATX Corporation-ALHX $700 $2,400 PC872 GBTX $100 $300 PC417 GE Rail Services Corp. $71,100 $245,200 PC344 Georgetown Rail Equipment Co. $2,300 $7,900 PC 185 Georgia Gulf Chemicals&Vinyls, LLC $100 $300 PC960 Georgia Power Company $17,400 $60,000 PC168 GLNX Corporation $2,900 $10,000 PC704 Greenbrier Management Services(FLIX) $94,600 $326,200 _. PC709 Greenbrier Management Services(GBRX) $7,400 $25,500 PC 855 Gulf Power Company $85,900 $296,200 PC175 Halliburton $800 $2,800 PC550 Helm Financial Corp. $900 $3,100 PC935 Helm-Pacific Leasing $500 $1,700 PC946 Herzog Contracting Corp. $500 $1,700 PC958 High Sierra Transportation $400 $1,400 _ PC888 Holcim(US), Inc. $39,000 $134,500 PC955 Independent Salt Co. $700 $2,400 PC261 INEOS Olefins&Polymers USA, LLC _.. $400 $1,400 _.._ _.._ PC957 Infinity Rail,LLC $900 $3,100 PC906 Innophos, Inc. --- $200 $700 -.. -.. ---- PC912 Intermountain Power Agency $11,600 $40,000 PC963 Interstate Commodities, Inc $800 $2,800 PC235 J&J Railcar Leasing LLC $400 $1,400 _.. PC878 J. R.Simplot Co. $5,900 $20,300 PC199 Kennecott Utah Copper, LLC $2,200 $7,600 PC987 L.B. Foster Company $400 $1,400 PC900 L.G.Everist, Inc. $4,900 $16,900 PC911 Lower Colorado River Authority $34,500 $119,000 PC292 Luminant Generation Company,LLC _... _... $2,900 $10,000 PC986 Macquarie Rail, Inc.* $13,400 $46,200 PC184 MHF Services _... -.-. $300 $1,000 PC537 Midamerican Energy _ .. _... _.. $200 $700 PC990 Midwest Ethanol Transport $400 $1,400 _. PC403 Midwest Generation,LLC $100 $300 PC918 Midwest Railcar Capital Equipment Co. $600 $2,100 PC999Midwest Railcar Corp. $2,100 $7,200 _. -.. 7/30/2010 WELD Page 2 of 4 ID Company Name $Assessed $Actual PC619 MillerCoors, LLC $17,000 $58,600 PC968 Minnesota Soybean Processors $300 $1,000 PC217 Mississippi Power Company $12,000 $41,400 PC214 Mitsui Rail Capital,LLC $42,200 $145,500 PC251 MRXX Corp. (Formerly Rex Leasing) _._ $100 $300 PC994 Muscatine Power and Water _.. $100 $300 _... PC152 NashTex Leasing, Inc. $200 $700 PC243 Nevada Cement Company $900 $3,100 PC230 Nevada Power Company,dba NV Energy $4,200 $14,500 PC039 North American Salt Company $100 $300 PC173 Nova Chemicals, Inc. $300 $1,000 PC428 NRG Power Marketing,LLC $425,700 $1,467,900 PC427 NRG Texas Power,LLC $11,300 $39,000 _. PC974 NTL Transportation, Ltd. $100 $300 PC226 Occidental Chemical Corporation $500 $1,700 _. PC 144 OCI Chemical Corporation $100 $300 PC285 Ohio Valley Electric Corporation $200 _.. $700 _.. PC910 Oil Dri Corporation of America $100 $300 PC894 Plains LPG Services, LP $200 $700 _.._ PC240 Procor Limited $15,500 $53,400 _.._ PC728 Proctor&Gamble Company $400 $1,400 PC600 Progress Rail Services Corporation $800 $2,800 PC241 Public Service Company of Colorado $434,600 $1,498,600 PC242 Public Service Company of Oklahoma $100 $300 PC901 Rail Connection,Inc. $300 $1,000 PC948 Rail Logistics LC $200 $700 PC416 Railcar Associates LP $5,300 $18,300 _.. _.._ PC415 Railcar Leasing,LLC $3,400 $11,700 PC926 Rampart Range Corp. $2,000 $6,900 PC973 Reagent Chemical&Research, Inc. $500 $1,700 _... _.. _. PC250 Relco Tank Line, Inc. $200 $700 PC887 Rio Grande Chemical,LTD $3,900 $13A00 PC866 Rocky Mountain Recycling, Inc. $1,000 $3,400 PC882 Rocky Mountain Transportation Services, Inc. $1,800 $6,200 PC691 S. M. Brooks Freight $100 $300 PC298 Savage-Tolk Energy Services $203,200 $700,700 PC944 SC Rail Leasing America, Inc. $2,800 $9,700 _.. PC201 Schlumberger Techology Corp. $3,700 $12,800 PC200 Searles Valley Minerals $100 $300 PC258 Shell Oil Company $200 $700 PC101 Solvay Chemicals, Inc. $1,500 $5,200 PC 940 Southern Rail Leasing _... $100 $300 PC333 Southwest Rail Industries, Inc $4,500 $15,500 PC255 Southwestern Electric Power Co $100 $300 PC042 Structural Metals, Inc. (dba CMC Steel Texas) $200 $700 PC989 Sumcom, Inc. _ - $1,200 $4,100 PC267 Tamak Transportation Corp. _.. $100 $300 PC782 Tate&Lyle Ingredients, Inc. $300 $1,000 PC044 Texas Railcar Leasing Co. $300 $1,000 _.. PC875 The Andersons,Inc. $3,400 $11,700 PC876 The Andersons, Inc.-Rail Group $100 $300 PC976 The Andrews Companies, LLC $500 $1,700 PC143 The CIT Group/Capital Finance $344,200 $1,186,900 PC905 The David J.Joseph Co. $6,900 $23,800 7/3 012 01 0 WELD Page 3 of 4 ID Company Name $Assessed $Actual PC797 The Empire District Electric Company $200 $700 PC967 The Tie Yard of Omaha, Inc. $100 $300 PC975 Total Petrochemicals USA, Inc. $200 $700 PC959 Transportation Technology Services,Inc. $100 $300 PC978 Trinity Chemical Leasing LLC $1,300 $4,500 PC278 Trinity Industries Leasing Company $353,900 $1,220,300 PC346 Trinity Rail Management,Inc. $11,600 $40,000 PC275 TTX Company $57.800 $199,300 PC985 Tube City IMS,LLC $200 $700_ PC376 Tubular Transport Services,Inc. $200 $700 PC909 Tucson Electric Power Company $22,300 $76,900 PC917 UNIMIN Corporation $7,500 $25,900 PC 873 Union Electric $1,000 $3.400 PC284 Union Tank Car Company $90,600 $312.400 PC951 US Ecology Idaho, Inc. $700 $2,400 PC970 VIP Tank Car Service $100 $300 PC862 Virginia Power Energy Marketing, Inc. $500 $1,700 PC964 Watco Companies, Inc. $200 S700 PC102 Wedron Silica Company $1,200 $4,100 PC954 Westar Energy, Inc. $1,000 $3,400 PC034 Western Evergreen Investment,LLC $1,200 $4,100 PC296 Western Fuels&Asphalt Supply,Inc. $1,000 $3,400_ — PC295 Western Fuels Assn.,Inc.* $63,300 $218,300 PC903 Western Railroad Equipment Co. $100 $300 PC883 Wisconsin Electric Power Co. $300 $1,000 PC668 Wisconsin Public Service Corp. $700 $2,400 TOTALS $2,923,500 $10,079,000 7/30/2010 WELD Page 4 of 4 Hello