Colorado – Pioneer Natural Resources v. CO Court of Appeals No. 12CA1703 Natural Gas Delivery Components Qualify For Exemption

SALT Report 3450 – On August 14, 2014 the Colorado Court of Appeals ultimately decided to affirm the district court’s orginal summary judgment in favor of Pioneer Natural Resources USA, Inc., stating that Pioneer Natural Resources USA, Inc.’s pipelines and fittings were located in a Colorado enterprise zone and did in fact qualify for the sales tax exemption.

“In this sales tax case, defendant, the Colorado Department of Revenue (DOR), appeals the district court’s summary judgment in favor of plaintiff, Pioneer Natural Resources USA, Inc. (Pioneer). The DOR takes issue with the district court’s conclusion that pipelines and fittings, which are located in one of Colorado’s enterprise zones and are used to gather and deliver natural gas from Pioneer’s wells to its processing facilities, qualify for Colorado’s sales tax exemption because they “are in direct use in the manufacturing of natural gas” as defined in section 39-26-709, C.R.S. 2013, and section 39-30-106, C.R.S. 2013. Because we disagree with the DOR, we affirm the district court’s summary judgment. ”

For Further Information:

CO Court of Appeals No. 12CA1703