- 159 - in a given period of time. During the period 1979 through 1993, Belle Fourche’s throughput ranged from approximately 26 to 36 million barrels per year;55 the highest volume was in 1993 (36.2 million barrels), while the lowest volume was in 1988 (26.2 million barrels). Since 1990, the company’s throughput has steadily increased. Belle Fourche earned revenue from its pipeline system by charging tariffs for transportation, delivery, and testing of crude oil. Amounts charged by Belle Fourche were regulated by Federal and State agencies. During the period 1988 through 1993, revenues increased at a compounded annual growth rate of 11 percent, from a low of $10.5 million in 1988 to a high of $17.5 million in 1993. Belle Fourche was profitable from 1988 to 1993, generating the highest pre-tax income of $8.2 million in 1990 and the lowest of $3.7 million in 1993 (As an S corporation, Belle Fourche is not required to pay corporate level income taxes.). However, pre-tax income margins have declined from a high of 61 percent in 1990 to a low of 21 percent in 1993. This trend is attributable to a 55Petitioners’ expert’s reports stated that Belle Fourche’s historical average throughput was 25,000 barrels per day. Annualizing that figure would result in average throughput of just over 9 million barrels per year. The parties did not address this discrepancy at trial or on brief. We find the 26 to 36 million barrels per year average to be more reliable because it was derived from respondent’s expert’s analysis of filings with regulatory agencies.Page: Previous 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 Next
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