OIL TEMPORARILY IN TANKS AT PIPELINE SYSTEM'S TANK FARM NOT SUBJECT TO AD VALOREM TAXATION

摘要

The Midland Pipeline System of interconnecting pipelines transports crude oil produced in West Texas and eastern New Mexico, ultimately to refineries in Texas and other states. A large amount of oil passes through the tank farm where the system converges near Midland, Texas. Although there is constantly a large amount of oil in the tanks, it is not stored. Instead, the tank farm facilitates the transportation of oil, and the time from the entry of oil into a tank until it exits is from six to 72 hours.