FERC Issues Final Rule Regarding Income Tax Allowances in Rate Setting for Pipelines: MLPs Not Precluded from Tax Allowance
Orrick has advised Borealis AG and NOVA Chemicals with respect to a petrochemicals joint venture with Total S.A. on the U.S. Gulf Coast.
The joint venture, named Bayport Polymers LLC (“Bay-Pol”), is 50% owned by Total and 50% owned by Novealis Holdings LLC, a joint venture between Borealis and NOVA Chemicals. The transaction closed on May 23, 2018.
The Bay-Pol joint venture includes the under-construction 1 Mt/y (2.2 b lb) ethane steam cracker in Port Arthur, Texas; an existing polyethylene 400 kt/y (880 m lb) facility in Bayport, Texas, previously wholly owned by Total; and a new 625 kt/y (1.35 b lb) Borstar ® polyethylene unit at Total’s Bayport, Texas, site.
The Orrick team advising Borealis and NOVA Chemicals was led by Blake Winburne, Jonathan Ayre, Joseph Lawlor and Alessandra Grace in the firm’s Houston office, with support from Matthew Archer, Grady Bolding, Brad Breen, Harry Clark, Claudia Frost, Brad Gathright, Greg Hume, Giji John, Antony Kim, Robert Lawrence, Dominic O’Brien, Alex Okuliar, Mitch Pahl, Rohit Sachdev, Darrell Thomas, Adeola Adeyemi, Shani Harmon, Grace Lentz, Andrea Memovic, Amy Padgett, and Gil Shefer.