Haught Files Brief Related To Oil And Gas Case
According to Wetzel County Prosecuting Attorney Timothy Haught, his office is filing an Amicus Curiae brief in the Doddridge County Commission vs. Antero Resources Corporation case. The brief wfas filed in the West Virginia Supreme Court of Appeals. Haught said it is expected the case most likely will not be decided until next year.
Haught said this case started out as Antero vs. Doddridge County Board of Assessment Appeals, in which Antero appealed the decision of the Doddridge County Commission, upholding the State Tax Department’s computation of the working interest in Antero’s oil and gas wells. Antero appealed the decision, and that appeal normally goes to the circuit court of Doddridge County. However, Antero’s council, which was Steptoe and Johnson, sought the removal of that case to the Business Court division. Haught said the case was taken away from the elected circuit judge of Doddridge County, and the case was heard by Judge Wilkes, the business court judge from Martinsburg, W.Va. Judge Wilkes ruled in Antero’s favor.
Haught explained that based upon that ruling, it would interpret the State Tax Department’s regulation for the calculation of the interest in these oil and gas wells. It would effectively cut that tax evaluation by 50 percent.
Haught said this is significant for all of the counties in the shale play region, because all of the counties in the shale play have had a dramatic increase evaluation in revenue as a result of the oil and gas boom. The practical affect on Wetzel County is a potential loss of $4 million on the excess levy for the Wetzel County Schools and $3 million in other revenue.
It was noted this ruling would affect the County Commission — resulting in a loss of over $2.7 million a year. Haught said this is a devestating blow to the school district and the counties and would suffer dire consequences going forward. It was noted the loss would affect the county’s ability to do many of the things that the Wetzel County Commission has done to help other community organizations, such as fire departments, parks and recreation departments, pools, and senior citizens. Haught said this loss in funds would come at a particularly time when some of the expenses as a result of the opioid epidemic are really skyrocketing – one of those being the regional jail expense. In May, the regional jail expense was $61,000. It has never been this high.
Mr. Haught said he had a meeting with Judge David W. Hummel to determine ways to reduce the regional jail expense going forward. He explained a normal expense before methamphetamine and heroin became a problem was about $20,000 – $25,000 a month. He noted with the explosion of the drug crisis, counties are experiencing these types of increases in expenses. Some of the larger counties haven’t been able to pay their jail bill.
Haught said another problem with the Antero decision is that many counties have made plans for improvements to courthouses, courts and other things. Harrison County had plans to build a judicial annex. All of these projects are jeopardized going forward because of the potential loss in tax revenue as a result of the Antero decision.
It was noted the West Virginia Association of Counties has filed a brief in support of Doddridge County. Also, Harrison County, Wetzel County, Dr. Paine on the State Superintendent of Schools, and the State Tax Commissioner have all filed a brief in support of Doddridge County as well. It was noted the counties, particularly those in the shale play, are affected. However, all of West Virginia is affected because when Wetzel County or Doddridge County loses money for its schools, there is a state funding formula.
That money that Wetzel and Doddridge can’t get will have to be made up under that state school funding formula.
Haught said one of the issues with the decision is that there has been an attack of the Constitutionality of the Business Court, because the code and Constitution requires that the case be heard by an elected circuit judge in the county and not a business court division judge. Haught said the Business Court Division was created in 2012 by Court Rule 29 which some contend is in violation of the West Virginia Constitution. The legislature impermissively delegated its power to the court to create the Business Court Division. Haught also said this case should have been heard by the elected judge at Doddridge County.
He said it is hopeful this case will be won, because even the fact that it’s being challenged causes problems as it affects the ability to plan long-term and the ability to budget.
Also, even if this case is specific to Doddridge County, if the Supreme Court upholds it, it will become the rule for the appeals in Wetzel County. Some of those appeals are currently pending. Haught said this is probably the most significant Supreme Court decision with respect to counties in the last 50 years, but unfortunately, it’s not getting as much attention as it should. He said this could have devastating affects.
In another matter, Prosecutor Haught had forwarded the letter from the Marshall County Prosecuting Attorney’s Office regarding the possible need for an expert witness in the State of WV vs. John Howell case. Normally, the commission budgets $10,000 for professional services, and money has been taken out of that if they need an expert. Fortunately, there have been very few instances where anything has had to be paid over the years. It was noted that it is unknown if anything will have to be paid immediately in this case because Judge Arthur Recht has upheld a plea offer that was made to Mr. Howell by Marshall County in the case. Timothy Haught was removed/disqualified from the case, after Howell spit on Haught in court.
Haught noted that Mr. Howell’s sentence is now 10 years to life with eligibility for parol after 10 years. He noted this doesn’t mean that Mr. Howell will parole, but he has a possibility of parole after 10 years. The State and Investigating Officer of the victim and others can oppose his parole. Haught noted that, for the time being, money is not needed for Marshall County to pay for the expert witness in that particular case. The plea that the judge imposed in the case may be appealed by the Marshall County Prosecuter’s Office. However, for now, that issue is off the table. Mr. Haught just wanted to inform the commission that if the case does go to trial, there may be some expenses.
In other commission matters, the commission dealt with a Coal Severance Fund Balance Revision. Bookkeeper Sue Miller was present to explain the request, which has to be made annually. The amount of the Coal Severance Fund Balance is $686,767.59. The commission had previously estimated it at $600,000, so that left an amount of $86,767.59 that needed to be put in another line item. The motion was made and approved to increase the fund balance by $86,767.59 and place the extra money into the ARC Insurance Fund.
Next, a motion was made and approved to appoint Tina Rush to the Northern Panhandle Workforce Investment Board on the Executive Committee.
A motion was made and passed to approve a revision to the budget with an increase of $3,022 that affects the law enforcement line item, and a motion was made and passed to approve the Progressive Communications portable radio price quote for the maintenance office in the amount of $2,420.
Also, a motion was made and approved to designate Steve Yoho as the new Office of Emergency Services and 911 Director, to replace Ed Sapp in his retirement.
In another matter, a motion was made and passed for a revision of the budget in the amount of $1.448 involving a refund to the Sheriff and Law Enforcement Account, and a motion was made and passed for a revision to the approved budget for the insurance program account for an increase of $86,768.
Also, Rick Healy from the Belomar Regional Council was present regarding the Wetzel County Public Service District One’s Small Cities Block Grant Application for a Public Hearing. The Wetzel County Commission is preparing an application to the West Virginia Development Office for $1.5 million in Small Cities Block Grant Funds – now called Community Development Block Grant Funds, to partially fund a waterline extension project. This project is PSD One’s fifth phase and will provide residents within the service area additional public water service. Residents and businesses within the proposed project area have requested this public water service, and the proposed project is as follows: The installation of approximately 35,000 lineal feet of eight-inch, six-inch, four-inch and two-inch waterline to serve 38 potential households with fresh water with adequate pressure. The project will connect to the PSD’s existing system of approximately 1.3 miles east of Jacksonburg. It will continue adjacent to Route 20, approximately 23,000 feet to the intersection of Fallen Timber Road. At this point, it will reduce to six-inch, and continue along Rt. 20 approximately 6,000 feet and terminate near the town of Smithfield. Along this route, there will be an approximately 300 feet line extension of four-inch on Fallen Timber Road and an approximate 41,000 feet four-inch extension on Arches Fork Road. The project will also include installation of a new 100 gallon per minute booster pump station, proposed to be located approximately one mile west of the town of Pine Grove along Rt. 20. This pump station will serve an existing tank near Jacksonburg, to fill and recover more rapidly than it currently does. The booster system will also facilitate future expansion. Funding for this project will come from the $1.5 Million Community Development Block Grant and the approximate $454,000 loan from the West Virginia Infrastructure and Jobs Development Council. That $454,000 loan is currently secured and is pending the receipt of the Small Cities Block Grant. At this point, the project is totally reliant upon the awarding of that grant.
It was noted this is the second application for the project. The first application was in 2017, and it wasn’t selected. Wetzel County has been extremely successful in many years with Community Devlopment Block Grants. However, the county hasn’t had one since Pine Grove in 2014. Pine Grove is being resubmitted this year, which is crucial. It is fully hoped and expected that it will be funded. There seems to be enough support/pressure for it to be funded.
It was also noted Wetzel County could get two projects approved. It just depends on the applications and where they fall. If the PSD One extension is not approved in 2018, it can be resubmitted for 2019. If it’s not selected in 2019, then a new application will be submitted.
In another matter, Matthew Brake from Swiss Valley Associates was present regarding the Heating/Air Conditioning Annex. The SVA Team members present were: Ron Palitto, President; Bill Brake, Vice-President and Engineer; and Matt Brake, Board Member, Engineer. SVA was established in 2000 and is licensed in multiple states: OH, WV, IL, KY, MI, PA. Some of their professional services include Civil Engineering, Mechanical Engineering, Electrical Engineering, Structural Engineering, Construction Management and Design/Build. Some of their past projects in Wetzel County include the WC Courthouse North & South Steps Replacement, Wetzel County Museum and the New Martinsville Public Library Parking Lot Upgrade. For the Wetzel County Courthouse Annex Building, they plan to study, report and provide a schematic design for renovation of the first and second floors. The proposed spaces include the commission’s meeting room, offices and storage. Possibilities for secure entrace for the courthouse will be investigated.