Enron Mail |
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 My service may be out of date.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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