Opinion ID: 2509156
Heading Depth: 2
Heading Rank: 1

Heading: The definition of a processing facility

Text: 119. Williams' alternative theory is that Western's booster compressors and glycol dehydrator are a processing facility. Under this theory, the point of valuation is determined by reference to the second sentence of Wyo. Stat. Ann. ง 39-14-203(b)(iv): When no dehydration is performed, other than within a processing facility, the production process is completed at the inlet to the initial transportation related compressor, custody transfer meter or processing facility, whichever occurs first. Williams' alternative argument rests an assumption that the Board might conclude that the glycol dehydrator was the only dehydrator, and we have done so. Supra., ถถ97 et. seq. If the glycol dehydrator were part of a processing facility, Williams would be correct in concluding that the custody transfer meter is the point of valuation. However, we conclude that Western's equipment is not a processing facility. 120. As a preliminary matter, we note that the second sentence of Wyo. Stat. Ann. งXX-XX-XXX(b)(iv) refers to dehydration rather than to a dehydrator. We conclude that such dehydration must be performed in a statutorily-defined dehydrator. The second sentence begins, When no dehydration is performed.... The word performed, in such close proximity to the word dehydrator at the end of the first sentence, suggests that the statutorily-defined dehydrator is what performs dehydration. However, if dehydration could be performed by a piece of equipment that is not a dehydrator, the statute might prescribe no point of valuation under some circumstances: there might not be a dehydrator to satisfy the requirements of the first sentence, but there might also be dehydration outside of a processing facility, which would negate the contingency of the second sentence. Our interpretation should avoid this absurd result. Stauffer Chemical Company v. Curry, id., at 1093. The statute means that dehydration, as used in the second sentence of Wyo. Stat. Ann. งXX-XX-XXX(b)(iv), is performed in a dehydrator, as defined in Wyo. Stat. Ann. งXX-XX-XXX(a)(viii).