Local development specialist talks about his brush with death page 27
Fred’s Café opens new location page 28
March 28 - April 3, 2011
Vol. 23, No. 13 • $2.00
Taxing Issues
EXCLUSIVE
Local appraisal districts to hear oil, gas want cases n Wendy Lyons Sunshine
Manning his station Lockheed’s Ralph Heath talks F-35, future of defense with the Fort Worth firm and describes it as a perfect fit. “At the time I really didn’t have an appreciation for the opportunities it would hold for me,” Heath said. “Frankly, I thought maybe I There’s no doubt Ralph Heath is comfortable stepping up to a would be here three or four years.” After traveling to Turkey to help formulate plans for a potential inchallenge. The executive vice president of Lockheed Martin Aeronautics and ternational sale of the F-16, Heath moved into general management. president of Lockheed Martin Aeronautics Co. is leading the F-35 He was appointed to his current position in 2005 and says he still Joint Strike Fighter program, a government project that began more draws on experiences from that first year. Today, in the middle of F-35 development, testing and production, than 10 years ago and is what Heath calls the largest military procurement in history. He predicts that at the project’s full production rate, there’s a change happening in employee culture at Lockheed Martin – anticipated in about four years, one F-35 will be produced per day one that Heath is proud to lead. He says it’s no longer enough to find and hire a qualified employee. Keeping employees happy is required. at Lockheed Martin’s facilities in Fort Worth. “With the changing demographics, there Heath’s new challenge? Recruiting the laare different expectations,” Heath said. “So bor force needed as his baby boomers plan Lockheed Martin Aeronautics we’re changing who we are. We’ve embarked for retirement. on what I call a cultural change within our “This is the No. 1 strategic challenge for Employment company about five years ago to make our business and everyone in our industry,” 4,999 at Fort Worth site sure we’re attractive to the next generation, Heath said. “This is a national agenda. If you (29,430 at all Aeronautics sites) to women and to minorities. I think we’ve look at the demographics of our work force, gained a lot of traction.” it’s close to 50 [years old], which means we Recent changes to facilities have included 2010 Sales: $13.2 billion will have significant retirements over the next a revamped cafeteria and the addition of five to 10 years. This is both a challenge but an employee fitness center. Some employalso an opportunity, because it creates an op2010 Payroll: $1.426 billion ees may take advantage of telecommuting portunity for the work force of tomorrow.” options. New schedules also allow for When Heath, 62, earned his engineering Economic impact every other Friday off, Heath said. degree and MBA from the University of Tenlocally: However, as providing flexibility nessee at Knoxville in the mid-’70s, he says, becomes a priority, the challenge of $6 billion plus job options were minimal. He had served finding qualified employees for the in the Army in between degrees and had a future remains. passion for aircraft, math and science. GenFort Worth Facility: “For the STEM – science, technology, eral Dynamics grabbed his attention as the 680 acres, 155 buildings, engineering and mathematics – there’s F-16 fighter jet program was just beginning. 7.7 million square feet Heath landed an entry-level engineering gig See Lockheed u 8 n Celestina Blok
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Special to the Business Press
Photo by Glen E. Ellman
Special to the Business Press
Appraisal districts from Tarrant, Collin and Dallas counties are among those that have filed briefs urging the U.S. Supreme Court to hear two Texas lawsuits concerning taxability of oil and gas in tank farms. Dallas filed its amicus curiae (friend of the court) brief, co-signed by Tarrant, Collin and other counties, on behalf of the plaintiff in Midland Central Appraisal District v. BP American Production Co. The case centers on taxability of oil in the Midland Tank Farm. Appraisal districts from across Texas and the country have filed friend of the court briefs in a related case concerning taxability of gas in underground storage tanks. That case is Harrison Central Appraisal District v. The Peoples Gas, Light and Coke Co. In both cases, Texas appeals courts concluded that the oil and gas were exempt from ad valorem tax under the dormant commerce clause because the product remained in interstate transit. The Texas Supreme Court declined to revisit the cases. Plaintiffs have petitioned for a writ of certiorari from the U.S. Supreme Court, asking it to hear both cases. The top court will indicate as early as mid-April or as late as this fall whether it agrees to hear them. Only one percent of cases are typically accepted by the Supreme Court, but the issues under dispute could be considered legally “ripe” and deserving of consideration. The Midland suit focuses on tax years 2003 and 2004, with lawsuits for subsequent years pending. About $3 million in taxes per year are at stake, said Midland’s lead counsel, D. Kirk Swinney of McCreary, Veselka, Bragg and Allen PC. The exact amount changes annually based on the price of oil, amount of oil in the tank farm and the tax rate. See TIPRO u 13
Business of baseball Texas Rangers vice president talks about club improvements, business moves.
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