The Kay County Equalization Board met in special session on Wednesday, May 16, 2007,

10:00 o’clock a.m. in the Commissioners Court of the Kay County Courthouse in Newkirk, Oklahoma. Notice of the meeting was posted on May 14, 2007 at the Courthouse front door, Commissioners Court, and basement handicapped entrance of the Kay County Courthouse in Newkirk, Oklahoma.

Chairman Harden called the meeting to order. Those present were as follows: Floyd Harden, Chairman; J. C. Estes, Vice-Chairman; Joe Cary, Member; Judy Barnes, Kay County Assessor; Carol Purdy/Rosie McCombs/Assessor’s Office; C. Wayne Frazell, P.E. Pritchard & Abbott, Inc. Valuation Consultants; Kirk Glasby, DuCharme, McMillen & Associates, Inc.; Bill Elias, Continental Carbon; Tammy Reese, Secretary/Kay County Clerk.

Motion was made by Estes and seconded by Cary approving special session meeting minutes of April 24, 200. Motion carried: Cary, aye; Estes, aye; Harden, aye.

There were no Notices of Approval or Disapproval by County Board Equalization & County Assessor of Manufacturer’s Ad Valorem Tax Exemptions.

Formal Appeal to the Kay County Board of Equalization hearings were heard as follows:

a. Mr. Bill Elias, Continental Carbon gave a brief history on the plant.

Mr. Kirk Glasby, Ducharme, McMillen & Associates, Inc. representing Continental Carbon, presented several summary points. He specifically mentioned how the plant and industry suffered excess capacity, weakened demand; loss of large (20%) customer; 2006 price concessions; litigation stigma; and repair costs included in value. Glasby included the following in his presentation handouts: Business Personal Property Rendition Attachment; Income (Loss) vs. Tax Value graph illustration showing how the value increased the income production and chart data showing years 2002 through 2007. He spoke of the history of the plants income and Cabot Corporation which is a diversified company in the chemical industry. Glasby stated Carbon Black essentially is a commodity.

Mr. C. Wayne Frazell, a personal property appraiser with Pritchard & Abbott represented the Kay County Assessor’s office. He gave a brief introduction of his company and his personal affiliation. Mr. Frazell included in his presentation handouts: Defense of Value-Appraisal; Comparisons and Analysis; and the following exhibits: Summary of recent index values used for industrial properties; projected net operating income vs. historical; Continental Carbon comparison for 2006/2007; Continental Carbon comparison value history/value increases. In conclusion, Mr. Frazell said in comparison to the Continental Carbon Facility in Moore County, Texas and the huge jump in net income for 2006 is considered, he feels the 2006/07 fair market value estimates are both fair and reasonable.

Chairman Harden thanked both groups for their presentations and requested additional time for the Board to review.

No decision was made on Formal Appeals to the Kay County Board of Equalization from the following: Ms. Fumiko Phillips or Mr. & Mrs. George Sheets.

Motion was made by Cary and seconded by Estes to recess until May 31, 2007, at 10:00 a.m. for final decisions (11:45 a.m.). Motion carried: Cary, aye; Estes, aye; Harden, aye.

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Approved this_____day of___________________, 2007.

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FLOYD HARDEN, CHAIRMAN

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J. C. ESTES, VICE-CHAIRMAN

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JOE R. CARY, MEMBER

ATTEST:

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TAMMY REESE, COUNTY CLERK

COUNTY OF KAY, STATE OF OKLAHOMA

SECRETARY, COUNTY EQUALIZATION BOARD

(SEAL)

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