Clajon Gas Co., L.P., Aquila Gas Pipeline Corp., Tax Matters Partner - Page 29




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          relevant under 13.2, such gathering pipelines were not “used by”            
          a natural gas “producer” as required for inclusion within such              
          asset guideline class.  Rather, Clajon’s gathering pipelines are            
          includable within 46.0 since they are “assets used [by Clajon] in           
          the * * * carrying of * * * gas * * * by means of pipes and                 
          conveyors.”17                                                               
          VII.  Conclusion                                                            
               Clajon is required to depreciate the gathering pipelines               
          utilizing a 15-year recovery period.                                        

                                                  Decision will be entered            
                                             under Rule 155.                          
               Reviewed by the Court.                                                 
               COHEN, GERBER, RUWE, WHALEN, COLVIN, CHIECHI, LARO, GALE,              
          and THORNTON, JJ., agree with the majority opinion.                         









               17  In its petition, petitioner argues, in the alternative,            
          that most of Clajon’s “gas gathering assets may also be properly            
          classified in Asset Guideline Class 49.23" (49.23), which                   
          provides a 14-year class life and a 7-year recovery period for              
          “Natural Gas Production Plant”.  Rev. Proc. 87-56, 1987-2 C.B.              
          674, 686.  Petitioner has failed to pursue its alternative                  
          argument on brief.  We conclude, therefore, that petitioner has             
          abandoned its alternative argument.  See Nicklaus v.                        
          Commissioner, 117 T.C. 117, 120 n.4 (2001).                                 






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