Testimony concluded Friday in 118th District Court in the lawsuit, filed by Alon — owner of the Big Spring Refinery — to contest what it claims are inflated appraisal valuations on the refinery.

Because of scheduling conflicts, lawyers for both sides will not be able to enter closing arguments for the next several days. District Judge Robert H. Moore III, who is hearing the case in lieu of a jury trial, said he will hear those arguments at the earliest opportunity, then render a judgment sometime in September, officials said.

Alon is contesting a $320 million tax appraisal levied against the refinery in 2007. Oil company officials claimed the valuation should be approximately $152 million, slightly more than half of the contested figure. The appraisal district's review board subsequently upheld the $320 million appraisal, prompting Alon to file the lawsuit.

The company has agreed to pay taxes on an $80 million valuation until the matter is resolved. That still leaves Howard County with a potential shortfall of more than $700,000 and Big Spring Independent School District picking up a $264,000 loss.

According to testimony entered by an expert witness Tuesday morning, the 2007 appraised valuation of the Big Spring Refinery should be approximately $173 million — slightly more than half the contested appraisal.

According to expert witness Kathy Spletter, a representative of Stancil and Company, the value of the Big Spring Refinery is $460 million after physical depreciation is applied. However, technological obsolescence — formed mainly around the lack of technological upgrades to the refinery — drops that value by an estimated $287 million.

According to Spletter's testimony, the $460 million value — based on cost evaluations — is decreased by $85 million in energy consumption; $131 million for the reforming unit; $31 million for the FCC (fluidized catalytic cracking) yield penalty; and $46 million for cost-to-cure spending.

Spletter said the an additional $3 million was tacked on to the total to provide for land and personal property  taxes, which is undisputed in the matter.

According to information presented by attorney Mark Hutcheson, lead counsel for Alon, the FCC unit at the Big Spring Refinery was 60 years old at the time of the 2007 valuation, and although it's been updated to some extent, yields remain below industry standards, coming in at approximately 74 percent compared to other refineries, which produce at 78 to 80 percent.

Spletter also explained the formulas used to determine the refinery's discount rate, yet another tool used by appraisers to determine the value of the facility.

Contact Staff Writer Thomas Jenkins at 263-7331 ext. 232 or by e-mail at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it