A decision by the state’s environmental agency against oil giant Valero could save Dumas Independent School District and Moore County from being forced to pay the company a combined $20.6 million.

The Texas Commisison on Environmental Quality has rejected a request by Valero to get a large tax break at six refineries, exemptions that could have triggered refunds of up to $92 million that would have come out of the budgets of cash-strapped school districts and municipalities.

At issue was a request from Valero Energy Corp., which operates in Moore County, for a tax break totaling as much as $92 million. TCEQ nixed the request, which called for a tax exemption on equipment meant to provide cleaner emissions from Valero's 10 plants in Texas. The result, of course, is that the taxing entities — Moore County and Dumas Independent School District — won't have to cut big checks to Valero. Dumas ISD officials said they would have had to pay Valero $4.8 million if TCEQ had approved Valero's request. Make no mistake: Dumas ISD gets a lot of money in tax revenue from the Valero McKee refinery ... about $4.5 million annually. Moore County's check to Valero would have been even greater, about $15.8 million; Valero's tax bill to the county totaled about $7.2 million in 2010.

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