Enron Mail

From:bob.chandler@enron.com
To:gary.zahn@enron.com
Subject:FW: Transwestern pipeline Colorado Audit FEIN 74-1294795 (Account L80-30571) Tour, Status and Protest (COMPRESSOR FUEL)
Cc:tracy.geaccone@enron.com
Bcc:tracy.geaccone@enron.com
Date:Tue, 28 Aug 2001 06:44:42 -0700 (PDT)

FYF Tax exposure.

-----Original Message-----
From: Rittgers, Dan
Sent: Monday, August 27, 2001 11:15 AM
To: 'Petersen, John'
Cc: Russo, Gavin; Hrna, Sandra
Subject: RE: Transwestern pipeline Colorado Audit FEIN 74-1294795 (Account L80-30571) Tour, Status and Protest (COMPRESSOR FUEL)

John, I have prepared a more formal position regarding the exemption of "Compressor Fuel" consumed in a "continuing business activity" (Gas services). Before I submit this position to you, I will circulate my position letter within the company and validate the facts.
I will be relying primarily on Colorado Regulations 26-102.21 or 39-26-104.1(d.1). Have these regulations changed recently? My service may be out of date.
Attached below are schedules for Compressor and Domestic fuel consumption for the audit period.

-----Original Message-----
From: Petersen, John [mailto:jpetersen@spike.dor.state.co.us]
Sent: Monday, July 30, 2001 2:16 PM
To: Rittgers, Dan
Subject: RE: Transwestern pipeline Colorado Audit FEIN 74-1294795
(Account L80-30571) Tour, Status and Protest


Dan,

Here is my initial response. I haven't had time to do too much research on
this, but this preliminarily the Department's position. Sorry this took so
long but I am working on a bankruptcy case which has my first priority. jp

< ----------
< From: Rittgers, Dan[SMTP:Dan.Rittgers@ENRON.com]
< Sent: Monday, July 23, 2001 12:20 PM
< To: Petersen, John
< Cc: Russo, Gavin; Hrna, Sandra
< Subject: RE: Transwestern pipeline Colorado Audit FEIN 74-1294795
< (Account L80-30571) Tour, Status and Protest
<
< <<File: REG.doc<<<<File: industrial use.doc<<
< The trip was very helpful for me as well. I learned a lot from Terry
< the day before.
<
< The decision to proceed further will not be my decision, but I will
< prepare an internal analysis, along three main points. In preparing
< this internal analysis, it would be helpful to know your (Colorado's)
< position on the following issues:
<
< ASSETS/PURCHASE AND SALE AGREEMENT (PSA)
<
< Our original position related to the characterization of our purchase as
< the purchase of real property, rather than TPP. Regarding your
< acquiescence of the pipeline from the original jeopardy assessment under
< this argument, thanks that is a big chunk of the original assessment.
< My tentative concern under this argument is that foundation, conduit,
< wires, pipe and valves remain on the schedule. The compressor might be
< a bit more difficult to argue under this position.
<
< Further, Friday, I submitted a copy of the "Operating and Sale
< Agreement". This agreement will further support my position that the
< PSA was not a purchase of TPP, but was the purchase of a 77% equity
< interest or right to the pipeline's capacity. Using this agreement, my
< position is that the transaction is fully exempt as provided by Reg.
< 26-102.15 (SEE Reg.doc ATTACHED). It says,' "Tangible personal
< property" does not include intangible personal property constituting
< mere rights of action..."' Transwestern is acquiring a "right" to
< capacity on the pipeline, as stipulated under the terms of "Exhibit C".
< Given the "Operating and Sale Agreement", do you see this as a viable
< conclusion?
If the operating agreement constituted the entirety of the writing
accompanying the transfer of cash from Enron to Northwest Pipeline Corp., I
might agree. But, the purchase agreement lists assets acquired for cash.


< COMPRESSOR FUEL/DOMESTIC FUEL
<
< I'll get the Compressor and domestic consumption numbers soon, and the
< price will be determined a little later. There are separate meters for
< measuring Compressor and Domestic fuel consumption. Friday, I submitted
< my tax exempt position for Compressor Fuel consumed for Gas Services
< (SEE industrial use.doc BELOW).
<
I don't believe that the statute and regulation support that position.
Transporting gas would have to qualify as providing gas or electric service
to qualify for the exemption. I don't believe it does. I definitely need
more research on this.

< PENALTY & INTEREST
<
< I will be requesting a waiver of penalty and interest on any assessment.
<
The disposition of penalty and interest will be resolved at a level above the auditor level.
< -----Original Message-----
< From: Petersen, John [mailto:jpetersen@spike.dor.state.co.us]
< Sent: Monday, July 23, 2001 9:52 AM
< To: Rittgers, Dan
< Subject: RE: Transwestern pipeline Colorado Audit FEIN 74-1294795
< (Account L80-30571) Tour, Status and Protest
<
<
< Dan
<
< Good morning. Thanks for the tour of the La Plata Facility. It was
< very
< helpful. I'll remove the $4,803,629 for the 'pipe 30" x .325' from the
< proposed taxable amount. Everything else I'll keep as previously
< determined
< unless I receive additional information from you.
<
< Also, I look forward to receiving the gas consumed figures for both
< domestic
< use, which I understand is taxable, and the compressor use which remains
< unagreed. If you have a proposal for the valuation of the gas consumed,
< that
< would be helpful also. Thanks again for the tour and your assistance in
< completing the audit. John Petersen, 303-355-0400 x 622.
< < ----------
< < From: Dan.Rittgers@enron.com[SMTP:Dan.Rittgers@enron.com]
< < Sent: Monday, July 02, 2001 10:08 AM
< < To: jpetersen@spike.dor.state.co.us
< < Subject: RE: Transwestern pipeline Colorado Audit FEIN 74-1294795
< < (Account L80-30571) Tour, Status and Protest
< <
< <
< < Return Receipt
< <
< <
< < Your RE: Transwestern pipeline Colorado Audit FEIN 74-1294795
< <
< < document (Account L80-30571) Tour, Status and Protest
< <
< < :
< <
< <
< <
< < was Dan Rittgers/ENRON@enronXgate
< <
< < received
< <
< < by:
< <
< <
< <
< < at: 07/02/2001 11:08:50 AM
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