Clajon Gas Co., L.P., Aquila Gas Pipeline Corp., Tax Matters Partner - Page 37

                                       - 37 -                                         
          natural gas producers is contrary to the common understanding of            
          the phrase “used by”.                                                       
               The majority acknowledge that the decision of the Court of             
          Appeals was based on the plain language of asset class 13.2                 
          (i.e., the phrase “used by * * * natural gas producers”).  See              
          majority op. p. 13.  The majority, however, fail to analyze this            
          language or present any cogent reasons why we should not strictly           
          adhere to it.  Without first finding that the language of asset             
          class 13.2 is ambiguous, the majority begin their analysis of               
          respondent’s revenue procedures using “historical material” to              
          conclude that Asset Depreciation Range classes were designed to             
          encompass industries and entities rather than assets.  See                  
          majority op. p. 11.  Historical development, like legislative               
          history, is a far less accurate embodiment of intent than plain             
          language and is susceptible to a wide array of interpretations.             
          Only after this historical analysis do the majority turn to the             
          plain meaning.  Even then, a plain meaning analysis is applied              
          only to asset class 46.2.                                                   
          III. The Majority Misinterpret the Primary Use Doctrine                     
               Before Clajon purchased the Southeast Texas Pipeline System            
          (SETPS) (i.e., the largest of the six systems), it is                       
          indisputable that this system was used primarily by natural gas             
          producers in the production process.  Clajon continued to operate           
          the SETPS without changing the system’s primary use.  The                   

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