Midland Cent. Appraisal Dist. v. BP America Production Co., 282 S.W.3d 215 (Tex. App.-Eastland 2009, pet. denied), cert. denied, 2011 U.S. LEXIS 3129 (Apr. 18, 2011)
, Commercial Appeals
, Energy Appeals
, Constitutional Law
In the leading case on taxability of crude oil, persuaded the court to construe the Commerce Clause of the U.S. Constitution to hold that oil moving through a tank farm remains in interstate commerce and therefore is not subject to ad valorem taxation. This appellate decision controls the outcome in numerous pending cases in which an appraisal district seeks to tax oil in transit through a pipeline system.