Opinion ID: 2509156
Heading Depth: 1
Heading Rank: 39

Heading: The statutory context of the processing definition

Text: 126. In formulating its position, Williams has also ignored the principal statutory context in which the word processing appears, although the Department has not. Findings of Fact, ถ72g. The statute provides four methods for determining the fair market value of natural gas sold after the point of valuation. Wyo. Stat. Ann. ง 39-14-203(b)(vi). Three of these methods depend on calculations which account for processing fees or costs. Wyo. Stat. Ann. งง 39-14-203(b)(vi)(B)(comparable value); XX-XX-XXX(b)(vi)(C)(netback); XX-XX-XXX(b)(vi)(D)(proportionate profits). 127. Valuation determinations with direct and significant tax consequences warrant the precision that the detailed definition of processing provides. The plain language of the definition demonstrates the care taken by the legislature to distinguish between production activity (not deductible) and processing activity (deductible). For example, separation for production purposes is not deductible under the first sentence of the point of valuation statute. Wyo. Stat. Ann. ง 93-14-203(b)(iv). However, separation which occurs within a processing facility is deductible due to the definition of processing and the use of that word in the valuation methodology provisions of the statute. Wyo. Stat. Ann. ง 39-14-203(b)(vi). Moreover, the functional breadth of the processing definition provides useful guidance regarding the limits deductible fees and costs. 128. We must interpret the statute in light of its grammatical structure. Resolution Trust Corp. v. Love, 36 F. 3d 972, 976 (10th Cir. 1994). A careful observer may object that the statute defines processing as a noun (an activity), yet employs processing as an adjective in the valuation methodology provisions. We conclude instead that processing, as used in the valuation methodology provisions, is an attributive modifier, and is therefore a noun. The Cambridge Grammar of the English Language, Chapter 6, ง2.4.1 (2002), p. 537. Grammatical structure does not interfere with our interpretation.