Oil Pipeline Franchise Fees Raised
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CARSON — Oil pipeline franchise fees are going up in Carson, an action by the City Council that is expected to increase yearly revenues for the financially strapped city by more than $30,000.
The new fees, charged to oil companies for existing pipelines within the city limits, will be based on a rate of $2 per cubic foot, the same rate that had been charged by Los Angeles. Aside from cost-of-living increases, Carson has not increased its base rates since 1983.
City officials said revenue is expected to increase 15%, from $250,000 per year to $287,000. In addition, the fees will be adjusted semiannually, varying with the consumer price index.
In July, the city adopted a $29.1-million 1991-92 spending plan, which is $500,000 lower than last year’s budget.
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