Opinion ID: 2509156
Heading Depth: 1
Heading Rank: 38

Heading: The characteristics of a processing facility

Text: 123. Processing is any activity occurring beyond the inlet to a natural gas processing facility... Natural gas, is defined by statute. Wyo Stat. Ann งXX-XX-XXX(a)(x). In its briefs and argument, Williams has ignored this definition, which provides direct insight into the legislature's intent, even though this definition was not enacted until 1998. 1998 Wyo. Sess. Laws, Ch. 5. The second sentence of the definition of natural gas states, For the purposes of taxation, the term natural gas includes products separated for sale or distribution during processing the natural gas stream including, but not limited to plant condensate, natural gas liquids and sulfur.  Wyo. Stat. Ann. ง 39-14-201(a)(xv) (emphasis supplied). This definition expresses at least some of the anticipated results of processing. 124. The only substantial difference in composition between coalbed methane at the wellhead, and the same gas at the inlet to the glycol dehydrator, is the degree to which that gas is saturated with water. In the glycol dehydrator, amounts of various impurities are removed in such trivial quantities that they may be vented into the air without being subject to Wyoming's air quality regulations. Findings of Fact, ถ62. We have accepted Rhinesmith's testimony that coalbed methane is not complex natural gas, because it contains few heavy hydrocarbons and few impurities. In the absence of heavy hydrocarbons and substantial impurities, we would not anticipate that Barrett's coalbed methane would yield plant condensate, natural gas liquids [or] sulfur, as stated in the statutory definition of natural gas. The evidence was consistent with our expectation. 125. The witnesses from the Departments of Revenue and Audit uniformly testified to an understanding of the characteristics of processing facilities in Wyoming. Findings of Fact, ถถ40, 72f. That common understanding fits squarely with the results of processing anticipated by the second sentence of the natural gas definition. For example, Simmons testified that if there were a processing facility, she would have expected settlement statements to indicate the segregation and sale of liquid products or byproducts such as sulfur. Findings of Fact, ถ40. Bolles explained that there was an identifiable universe of processing plants, such as Whitney Canyon, Painter, and Carter Creek. Findings of Fact, ถ72f.