The Texas Thirteenth Court of Appeals has ruled that EOG Resources Marketing LLC was wrongly assessed $7.8 million in property taxes on crude oil stored for export, reversing a trial court decision.
As reported by Law360, the appeals court held that EOG's presold crude oil, held at an Enbridge terminal in Texas while awaiting shipment to buyers in Italy, South Korea, Peru, the Netherlands, France, and the United Kingdom, is exempt from state property taxation under the Import-Export Clause of the U.S. Constitution. The court reaffirmed that presold crude oil set for export "enjoys bright line immunity from taxation."
Will Grubb secured this reversal with assistance from Jonathan Baughman and Ashley Vega.
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The case is EOG Resources Marketing LLC v. San Patricio County Appraisal District, case number 13-25-00305-CV, in the Texas Court of Appeals for the Thirteenth District.