FW: Transwestern pipeline Colorado Audit FEIN 74-1294795 (Account	 L80-30571) Tour, Status and Protest  (COMPRESSOR FUEL) 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  My service may be out of date.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 >  > <><> > 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 > >  > >   > >  > >  > >  > >  > >  >