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Energy & the Law

Category Archives: Taxation

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Texas Comptroller Prevails in Tax Exemption Claim

Posted in operations, Taxation

A fight over the Texas sales tax drew industry-wide attention when the trial judge commented from the bench that he was inclined to exempt purchases of casing, tubing, pumps and related services from Texas state sales tax. His actual ruling denied the relief sought by the taxpayer. In Southwest Royalties v. Hegar, the Texas Supreme Court agreed…. Continue Reading

Operator: Be Careful Handling Ad Valorem Taxes

Posted in Taxation

This is to be expected in these dark days of diminished cash flow. Imagine:  You are the operator and the non-ops have given you their share of ad valorem taxes, expecting you to pay them to the taxing authority at the right time. Things are a little tight, if you know what I mean, so you divert “borrow” the funds… Continue Reading

Can the Tax Man Come After Your Stored Gas?

Posted in Taxation

Co-author Matthew Wheatley The owner of 33 BCF of gas cant’ just stuff it in his pocket and move it county-to-county to avoid taxes. So, the question: Is gas in storage subject to ad valorem tax on personal property?  The Harris County Appraisal District thought so. The taxman prevailed in ETC Marketing v. Harris County Appraisal District. The gas was stored in a depleted… Continue Reading