Clajon Gas Co., L.P., Aquila Gas Pipeline Corp., Tax Matters Partner - Page 30

                                       - 30 -                                         
               WELLS, C.J., dissenting.  I respectfully dissent.  In the              
          instant case, the majority opinion states that it will follow our           
          opinion in Duke Energy Natural Gas Corp. v. Commissioner, 109               
          T.C. 416 (1997), which was reversed by the United States Court of           
          Appeals for the Tenth Circuit, 172 F.3d 1255 (10th Cir. 1999).              
          In rejecting the plain language analysis of Rev. Proc. 87-56,               
          1987-2 C.B. 674 by the Court of Appeals, however, the majority              
          opinion in the instant case does not rely on this Court’s                   
          rationale in Duke Energy Natural Gas Corp.  Rather, the majority            
          injects yet another rationale, based upon its reading of the                
          regulations, to decide that petitioner must depreciate its                  
          gathering system using a 15-year recovery period instead of a 7-            
          year recovery period.  While I agree with Judge Foley’s dissent,            
          I have an additional point I would like to raise.  Revenue                  
          procedures are published to guide taxpayers, who are permitted to           
          rely on them.  We should not read an ownership requirement into             
          Rev. Proc. 87-56, 1987 C.B. 674, where its plain language does              
          not require it.                                                             
               In section 167(m), Congress delegated respondent broad                 
          powers to promulgate regulations to determine the class lives of            
          property used in the natural gas industry.  Respondent                      
          promulgated regulations pursuant to that authority and indicated            
          that the class guidelines would be published pursuant to that               

Page:  Previous  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  38  39  Next

Last modified: May 25, 2011