Message-ID: <13950701.1075842470412.JavaMail.evans@thyme> Date: Tue, 21 Nov 2000 02:58:00 -0800 (PST) From: lon.stanton@enron.com To: mike.mcgowan@enron.com, mary.miller@enron.com, dave.neubauer@enron.com, drew.fossum@enron.com, michel.nelson@enron.com, beth.jensen@enron.com, stephen.poulson@enron.com, jerry.moore@enron.com, mark.adelmann@enron.com Subject: FW: Litigation News Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Lon Stanton X-To: Mike McGowan, Mary Kay Miller, Dave Neubauer, Drew Fossum, Michel Nelson, Beth Jensen, Stephen Poulson, Jerry Thomas Moore, Mark Adelmann X-cc: X-bcc: X-Folder: \Drew_Fossum_Dec2000_June2001_1\Notes Folders\Discussion threads X-Origin: FOSSUM-D X-FileName: dfossum.nsf As you may recall we have been arguing with the MN Dept. of Revenue for years over whether or not natural gas used as a compressor fuel was subject to the Minnesota use tax. Great Lakes has been in court with the DOR over this same issue. Today I received the following, which is an internal memo that was circulated in the Dorsey & Whitney law firm, which has been representing Great Lakes announcing a favorable ruling. ---------------------- Forwarded by Lon Stanton/ET&S/Enron on 11/21/2000 10:54 AM --------------------------- "Ahern, Michael" on 11/21/2000 10:18:28 AM To: "Stanton, Lon (E-mail)" cc: Subject: FW: Litigation News Lon, thought you might be interested in this. > -----Original Message----- > From: Buckvold, Bob > Sent: Tuesday, November 21, 2000 9:04 AM > To: TRT All; Dirks, Katy; Frederick, Gloria; Snow-Samanant, Julie; > Starkey, Melissa; Hinkley, Sally > Subject: Litigation News > > In a successful collaboration between the Tax Department and the > Trial Department, Jack Windhorst and Chris Shaheen went to trial in > Minnesota Tax Court and obtained a $1.5 million judgment for our client, > Great Lakes Gas Transmission Ltd. Partnership. Great Lakes transmits > natural gas on behalf of shippers through an interstate pipeline system > that runs through various states, including Minnesota. The pressure of > the gas decreases as it moves through the pipeline system. Great Lakes > has five compressor stations along its pipeline in Minnesota, at which > separators and compressor engines refine the gas and increase the pressure > of the gas so that it will continue to flow through the pipeline. Some of > the natural gas in the system is burned as fuel by the compressor engines. > > The Minnesota Commissioner of Revenue determined that Great Lakes > must pay "use tax" for the compressor fuel gas and, in a 1998 Order, > denied Great Lakes' claim for a refund of use taxes paid in 1994 and 1995. > At a two day trial in February, Great Lakes presented fact and expert > testimony supporting its contention that the compressor fuel was consumed > in "industrial production" and therefore was exempt from taxation under > the "industrial production exemption." The Commisioner argued that Great > Lakes was simply transporting the gas and therefore did not qualify for > the exemption. After extensive post-trial briefing, the court issued an > opinion on November 16 reversing the Commissioner's Order and entering > judgment for Great Lakes. The decision should result in millions of > dollars in additional savings for Great Lakes for tax years not directly > at issue in the case. >