- 29 -
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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