HomeMy WebLinkAboutResolution - 2311 - Agreement - Pioneer Corporation - Regarding Tax Refund Litigation - 05/08/1986JCR:cl
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Resolution #2311
May 8, 1986
Agenda Item #21
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock an Agreement
Regarding Tax Refund Litigation between the City of Lubbock and Pioneer
Corporation, triplicate originals attached herewith, which shall be spread
upon the minutes of the Council and as spread upon the minutes of this
Council shall constitute and be a part of this Resolution as if fully
copied herein in detail.
Passed by the City Council this 8th day of May , 1986.
2�7- C, 00
'B.C. McMINN, MAYOR
ATTEST:
Ranette Boyd, City Secretary
APPROVED AS TO FORM:
ohn C. Ross, Jr., City Attorney
JCR:cl
AGREEMENT REGARDING TAX REFUND LITIGATION
Resolution #2311
This agreement, made and entered as of the 8th day of
May , 1986, by and between Pioneer Corporation and the
City of Lubbock.
WITNESSETH:
WHEREAS, Pioneer Corporation ("Pioneer") and the City of
Lubbock ("City") are presently in litigation to recover from the
State of Texas gross receipts taxes paid by Pioneer in which the
City has a direct pecuniary interest by virtue of contractual
agreements between the City and Pioneer and Pioneer is the
successor of the right to refund gross receipts tax based on its
sales through its transmission pipeline system in the City of
Lubbock pursuant to contracts of Westar Transmission Company and
Pioneer Natural Gas Company, formerly divisions of Pioneer.
Pioneer and the City entered into an agreement as of December 14,
1979 which was amended on December 10,,1981, the effect of which
was to provide that the City would be the ultimate recipient of
any benefit to Pioneer resulting from a favorable final deter-
mination concerning the gross receipts tax paid on sales of
natural gas at the City's Holly Avenue Plant to the extent that
the tax paid was actually passed through and paid by the City.
Because the pass-through of the gross receipts tax to the
City was phased in and because of questions relating to the
application of the formula for determining the amount of refund,
the parties have agreed to the amount of refund that the City is
entitled to receive in the event a refund is obtained relating to
the sales at the Holly Avenue Plant. It is accordingly agreed by
the City and Pioneer that in the event that the gross receipts
tax applicable to distribution pipeline companies is not appli-
cable to the sale of gas at the Holly Avenue Plant, the City
would be entitled to a refund of $699,683.00.
Pioneer is claiming a total of $29603,240.31 which repre-
sents gross receipts taxes paid to the State for sales of gas at
the City's Holly Avenue Plant plus sales of gas to three in-
dustrial customers from its transmission pipeline system. It has
become necessary for Pioneer and the City to retain an expert
witness to assist in this case. The parties agree that they will
each pay the percentage total that they would receive based on a
recovery on the entire claim. The City of Lubbock will be
responsible for 26.90 of the cost relating to the expert, and
Pioneer Corporation will be responsible for 73.10' based on the
following:
Pioneer Corporation
City of Lubbock
$1,903,557.31 (73.10)
699,683.00 (26.90')
2,603,240.31 (10090)
-2-
It is agreed that the expert will send the original of his
bill to Pioneer with a copy to the City. Pioneer will pay the
entire bill, and the City will reimburse Pioneer for 26.90 of the
total within days after Pioneer has notified the City
that payment has been made.
IN WITNESS WHEREOF, the parties have caused this agreement
to be duly executed on this the day and year first above written.
ATTEST:
Assistant Secretary
,ATTEST:
.Ranette Boyd, City Secretary
'i APPROVED AS TO CONTENT:
i
. Robert Masse�nga
Assistant City Manager
-3-
PIONEER CORPORATION
BY:
CITY OF LUBBOCK:
B Y : 10 s�
B.C. MCMINN, MAYOR
APPROVED AS TO FORM:
C j �y� �/
C. Ross, Jr.
phn
ty Attorney
x
CITY OF LUBBOCK
� _ Office of
The City Attorney
o
A`*ak
77
P.O. Box 2000
Lubbock, Tx. 79457
(806) 762-6411
Mr. Thomas M. Pollan
Bickerstaff, Heath & Smiley
United Bank Tower, Suite 1419
400 West 15th Street
Austin, Texas 78701-1646
December 16, 1986
Re: Contract between City and Pioneer Corporation
Dear Tom:
I'm sorry to resurrect this particular matter again,
however, I must inform you that I have not yet received a
executed copy of the contract between the City of Lubbock
and Pioneer Corporation in regard to the percentage of cash
money as the City would receive from any settlement or
Judgment in the suit between Pioneer Corporation and the
State Comptroller and also covering the City's obligation to
pay 26.9 percent of the cost of experts in the above
referenced case.
I am at this time asking for your assistance and am
enclosing a copy of the Resolution authorizing the contract
here in the City of Lubbock as well as a blank copy of the
agreement and would request that you take this matter up
directly with the Austin attorney representing Pioneer
Corporation, have him obtain the signature of the proper
officials for Pioneer Corporation, return it you so in turn
you may return it to me.
After I have received the executed copy by Pioneer
Corporation, I will again have the Mayor sign it and return
a copy to you so you in return may deliver this to the
attorney for Pioneer Corporation.
JOHN C. ROSS, JR.
City Attorney
DONALD G. VA\DIVER
First assistant
JAMES P. BREWSTER
Civil Trial attorney
DENNIS W. McGILL
Assistant Civil
Trial attorney
JAMES F. MOORE II
J. WORTH FULLINGIM
KEXJOH\SON
HAROLD WILLARD
LAURA J. RIO\ROE
NTICIIELE HART
B.J. "Beni" IIEMbIELI\E
It
I am also in receipt of the first bill for the expert
services vis-a-vis a letter from Mr. Edward K. Norfleet,
Jr., attorney for Mesa and am enclosing a copy of this
letter wherein they referenced the above mentioned contract.
Evidently, Mesa is going on the fact that the contract is in
existence and if this is so, I would merely like to have a
copy of this for my file and also so that the city secretary
may complete her records.
I am sorry to bother you with this, but however, it is
important and I have not been able to receive a copy any
other way. I appreciate your immediate attention to this
matter and any help that you can render in this regard.
JCR: da
Enclosure
Sincerely yours,
John C. Ross, Jr.
City Attorney
Resolution #2311
May 8, 196
Agenda Item #21
;i
JCR:cl
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock an Agreement
Regarding Tax Refund Litigation between the City of Lubbock and Pioneer
Corporation, triplicate originals attached herewith, which shall be spread
upon the minutes of the Council and as spread upon the minutes of this
Council shall constitute and be a part of this Resolution as if fully
copied herein in detail.
Passed by the City Council this 8th day of May , 1986.
'B.C. McMINN, MAYOR
ii
! ATTEST:
Ranett.e Boyd, City Secretary
i
! APPROVED AS TO FORM:
bhn C. Ross, Jr., City Attorney
JCR:cl
if RESOLUTION
i BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
i
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
II directed to execute for and on behalf of the City of Lubbock an Agreement
Regarding Tax Refund Litigation between the City of Lubbock and Pioneer
Corporation, triplicate originals attached herewith, which shall be spread
upon the minutes of the Council and as spread upon the minutes of this
Council shall constitute and be a part of this Resolution as if fully
copied herein in detail.
i
Passed by the City Council this _ day of 1986.
B.C. MCMINN, MAYOR
i
ATTEST:
Ranette Boyd, City Secretary
APPROVED AS TO FORM:
c _7�,.-s-,
ohn C. Ross, Jr., City Attorney
J C R : c I
AGREEMENT REGARDING TAX REFUND LITIGATION
This agreement, made and entered as of the day of
, 1986, by and between Pioneer Corporation and the
City of Lubbock.
WITNESSETH:
WHEREAS, Pioneer Corporation ("Pioneer") and the City of
Lubbock ("City") are presently in litigation to recover from the
State of Texas gross receipts taxes paid by Pioneer in which the
City has a direct pecuniary interest by virtue of contractual
agreements between the City and Pioneer and Pioneer is the
successor of the right to refund gross receipts tax based on its
sales through its transmission pipeline system in the City of
Lubbock pursuant to contracts of Westar Transmission Company and
Pioneer Natural Gas Company, formerly divisions of Pioneer.
Pioneer and the City entered into an agreement as of December 14,
1979 which was amended on December 10, 1981, the effect of which
was to provide that the City would be the ultimate recipient of
any benefit to Pioneer resulting from a favorable final deter-
mination concerning the gross receipts tax paid on sales of
natural gas at the City's Holly Avenue Plant to the extent that
the tax paid was actually passed through and paid by the City.
Because the pass-through of the gross receipts tax to the
City was phased in and because of questions relating to the
application of the formula for determining the amount of refund,
the parties have agreed to the amount of refund that the City is
entitled to receive in the event a refund is obtained relating to
the sales at the Holly Avenue Plant. It is accordingly agreed by
the City and Pioneer that in the event that the gross receipts
tax applicable to distribution pipeline companies is not appli-
cable to the sale of gas at the Holly Avenue Plant, the City
would be entitled to a refund of $699,683.00.
Pioneer is claiming a total of $2,603,240.31 which repre-
sents gross receipts taxes paid to the State for sales of gas at
the City's Holly Avenue Plant plus sales of gas to three in-
dustrial customers from its transmission pipeline system. It has
become necessary for Pioneer and the City to retain an expert
witness to assist in this case. The parties agree that they will
each pay the percentage total that they would receive based on a
recovery on the entire claim. The City of Lubbock will be
responsible for 26.90 of the cost relating to the expert, and
Pioneer Corporation will be responsible for 73.10 based on the
following:
Pioneer Corporation $1,903y557.31 (73.10)
City of Lubbock 699,683.00 (26.90)
2 ,603 ,240 .31 ( 100°S )
- -2-
It is agreed that the expert will send the original of his
bill to Pioneer with a copy to the City. Pioneer will pay the
entire bill, and the City will reimburse Pioneer for 26.90 of the
total within days after Pioneer has notified the City
that payment has been made.
IN WITNESS WHEREOF, the parties have caused this agreement
to be duly executed on this the day and year first above written.
ATTEST:
Assistant Secretary
ATTEST:
Ranette Boyd, City Secretary
APPROVED AS TO CONTENT:
J. Robert Massengale
Assistant City Manager
-3-
PIONEER CORPORATION
BY :
CITY OF LUBBOCK:
BY:
B.0 . McMINN , MAYOR
APPROVED AS TO FORM:
John C. Ross, Jr.
City Attorney
December 5, 1986
City At'orrle',
Mr. John C. Ross, Jr.
City Attorney
P.O. Box 2000
Lubbock, TX 79457
Pioneer Corporation v. Bullock
No. 383,722
Dear Mr. Ross:
Edward K. Norfleet, Jr.
attorney
Enclosed please find copies of invoices in connection with the above
referenced matter. Pursuant to the Agreement Regarding Tax Refund
Litigation dated the 8th day of May, 1986, by and between Pioneer
Corporation and the City of Lubbock, the City of Lubbock agreed to pay
26.9% of the cost relating to expert witnesses and discovery. The total
of the enclosed invoices is $10,138.77, with the City of Lubbock's 26.9%
share being $2,727.33. Please forward your check in this amount payable
to Mesa Operating Limited Partnership to me at the address shown below.
Your cooperation in this matter will be greatly appreciated.
S'ncerely,
I(-
nb
Edward K. Norfleet, Jr.
Enclosures
MESA LIMITED PARTNERSHIP
ONE MESA SQUARE / POST OFFICE BOX 2009 / BOB 878-1000 / AMARILLO, TEXAS 79189-2009
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h Gilbe' rt rBernal
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& Cookrew apiro, Edens
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,¢ Attorneys atLaw rte: ,sr T��, �,, fes,
��r .• t �x ! BOB BULLOCK, COMPTROLLER OF PUBLIC
i r+r' pry
2200.aOne American Center
6m .r
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r't -600 Congress Avenue`°~lwl7v_
ACCOUNTSOF..THE STATE OF TEXAS �;� >r a- 3 ,p-" _- 4+"iPNO 83,722',>stin Texas _78701��'�3RD /- TRAVIS)
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-deposit 'JAMES R.HART'sand �a co
.. py ., .,the 1deposition of
�•• CHARLES E ,SAUER, both re orte'd 'on Se tember '25, fI986. Originals
deli.vered to 'the witnesses 'for signature ; upon "return' tcourt
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A BETTER COURT REPORTING SERVICE, INC.
CERTIFIED SHORTHAND REPORTERS
600 WEST 9TH, SUITE B
AUSTIN, TEXAS 78701
(512) 478-1989
November 11, 1986
TO: GILBERT BERNAL, ESQ.
Shapiro, Edens & Cook
2200 One American Center
Austin, Texas 78701
NOV I
v •.-i0
INVOICE NO:
RE: No. 383,722
Pioneer Corporation Vs. Bob Bullock, Comptroller of
Public Accounts of The State of Texas
Original and one copy of .the deposition of:
G. C. EDGAR --------------------------------
7 --------
(Taxable Costs: $468.50) -
s�
TAX I.D. NO. 74-2394712
Received by:
86-1163
6711 80
PLATT, SPARKS & ASSOCIATES, INC.
925-A Capital of Texas Highway, Suite 200
Austin, Texas 78746
(512) 327-6930
Mesa Operating LTD Partnership
P. 0. Box 2009, One Mesa Sq.
Amarillo, Texas 791898-2009
Attn: Edward K. Norfleet, Jr.
RE: Lubbock Pipeline Dispute
PREVIOUS BALANCE
INTEREST IS 0.5 % OF PAST DUE BALANCE
DATE PROFESSIONAL SERVICES RENDERED
10-01-86 Sit in on depositions.
10-03-86 Review and study files. Sort. Update.
Prepare exhibits.
10-08-86 Read deposition, correct and sign.
10-08-86 Copy transcript for Sears.
10-31-86 Engineering Assistants
TOTAL FOR THE ABOVE SERVICES
DATE EXPENSES
10-31-86 Reproduction
TOTAL FOR THE ABOVE EXPENSES
tiVL1
RE,CH�1 1
`ov 2"v 1931
BILLING DATE 11-17-86
ACCT NO. PSA000178-0-1A
INDIV
GFS
GFS
GFS
CAM
EA
PAYMENT RECEIVED
TOTAL PAYMENTS
$7,726.84
$38.63
TIME
5.00 $600.00
1.50
2.00
0.50
2.50
11.50
$180.00
$240.00
$30.00
$80.00
$1,130.00
$46.50
$46.50
TOTAL $8,941.97
AMOUNT DUE
$0.00
$8,941.97
THANK YOU - INVOICE DUE UPON RECEIPT
.5% Interest Per Month to Balance Due After 30 Days
Payments Received After the lst Will Be Credited on Your Next Invoice
PLATT, SPARKS & ASSOCIATES, INC.
925-A Capital of Texas Highway, Suite 200
Austin, Texas 78746
(512) 327-6930
Mesa Operating LTD Partnership
P. 0. Box 2009, One Mesa Sq.
Amarillo, Texas 791898-2009
Attn: Edward K. Norfleet, Jr.
RE: Lubbock Pipeline Dispute
PREVIOUS BALANCE
INTEREST IS 0.5 o OF PAST DUE BALANCE
DATE PROFESSIONAL SERVICES RENDERED
(SEE ATTACHED LIST)
TOTAL FOR THE ABOVE SERVICES
DATE EXPENSES
09-30-86 Third Party Copy Charges
09-30-86 Reproduction and Telephone
09-30-86 Express Mail Charges
09-30-86 Third Party Drafting
TOTAL FOR THE ABOVE EXPENSES
BILLING DATE 10-15-86
ACCT NO. PSA000178-0-1A
PAYMENT RECEIVED
TOTAL PAYMENTS
$2,017.75
$10.09
TIME
53.50 $5,056.00
$19.31
$4.69
$23.00
$596.00
$643.00
TOTAL $7,726.84
AMOUNT DUE
$0.00
$7,726.84
THANK YOU - INVOICE DUE UPON RECEIPT
.5% Interest Per Month to Balance Due After 30 Days
Payments Received After the 1st Will Be Credited on Your Next Invoice
r
PLATT, SPARKS A ASSOCIATES, INC.
925-A Capital of Texas Highway, Suite 200
Austin, Texas 78746
(512) 327-6930
Mesa Operating LTD Partnership
P. 0. Box 2009, One Mesa Sq.
Amarillo, Texas 791898-2009
Attn: Edward K. Norfleet, Jr.
DATE PROFESSIONAL SERVICES RENDERED
09-02-86 Begin preparation of expert opinion
letter.
09-03-86 Calculations of SMYS and hoop stress for
affadavit. Speak with attorney. Make
call to J. Carnal. Supervise RRC gas
utilities division search for city gate
rate hearing.
09-04-86 Letter to attorneys, affadavit on SMYS,
calculations of pressure in pipeline.
09-05-86 Affadavits of hoop stress, questions for
Dr. Podio, expert opinion, GUD hearings
at RRC.
09-08-86 Prepare several drafts of affadavit and
expert opinion letter and questions for
Dr. Podio.
09-10-86 Prepare exhibits. Meeting with
attorneys.
09-11-86 Prepare of exhibits. Preparation for
trial. Meeting with attorneys. Discuss
case.
09-15-86 Discuss change in deposition and trial
schedule with attorney.. Finish reading
summary judgement pleadings.
09-17-86 Review letter from attorney. Answer
questoins about Slaton-Post line.
09-18-86 Letter to attorney. Prepare notes on
construction file for depostions.
09-19-86 Study data. Prepare data.
PAGE 2
BILLING DATE 10-15-86
ACCT NO. PSA000178-0-1A
INDIV TIME
GFS 4.00 $480.00
GFS 4.50 $540.00
GFS 2.00 $240.00
GFS 5.00 $600.00
GFS
5.00
$600.00
GFS
3.00
$360.00
GFS
2.00
$240.00
GFS
1.00
$120.00
GFS
1.50
$180.00
GFS
1.50
$180.00
GFS
1.00
$120.00
PLATT, SPARKS $ ASSOCIATES, INC.
925-A Capital of Texas Highway, Suite 200
Austin, Texas 78746
(512) 327-6930
PAGE 3
Mesa
Operating LTD Partnership
BILLING DATE
10-15-86
P. 0.
Box 2009, One Mesa Sq.
Amarillo, Texas 791898-2009
ACCT NO.
PSA000178-0-1A
Attn:
Edward K. Norfleet, Jr.
DATE
PROFESSIONAL SERVICES RENDERED
INDIV
TIME
09-24-86
Prepare trial exhibits.
GFS
1.50
$180.00
09-30-86
Prepare for attorney meeting. Review
files, prepare questions. Work on
exhibits.
GFS
6.00
$720.00
09-30-86
Engineering Assistants
EA
15.50
$496.00
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BILL TO: PLATT
SPARKS
OFAASSOCIATES
TX HWY S INC SENDER ACTIVITY SUMMARY925 CAPITAL PAGE 2 OF
AUSTIN. TX 78746 DATE ng/i Ad
TRACKING NOS
SENDER'S NAME AND
-•••••�....
RECIPIENT INFORMATION AND
.....
PACKAGES
.=.--.vim-v�oo� IALA-UUNI
NU.
U187-0734
REFERENCE
ACCOUNT ADDRESS
PROOF OF DELIVERY
& WEIGHT
SERVICES
CHARGES
CHARGES
897213332
DANNY WILSON
PLATT SPARKS & ASSOCIATES INC
GEORGE HILLIS
BASS ENTERPRISES PRIZES
1/ 2
OVRNIGHT ENV
23.OD
925 CAPITAL OF TX HWY S 4200
201 MAIN ST
DISCOUNT
-3.00
AUSTIN, TX 78746
FORT WORTH TX 76102 AA
6867246 1
DROP OFF 09/02/86
SIGNEDREG STEWART6 08:27
6704459 1
DROP OFF 08/27/86
D 08/28/86 09:10
SIGNED: B MCCLAIN
•
20.0
897213354
DANNY WILSON
PLATT SPARKS & ASSOCIATES INC
MR JIM GREVE
BASS ENTERPRISES PROD CO
1/ 5
OVRNIGHT BOX
31.25
!
CAPITAL OF TX HWY
DISCOUNT
-3.00
7FMRHTREETAUSTNTX 7846
ORTWOTTX 76102 AA
6938218 1
DROP OFF 09/04/86
SIGNEDREG RAMIREZ6 08:35
6832273 1
DROP OFF 08/28/86
08/29/86 0a:39
SIGNED: M HUNT
28.2
897213321
DANNY WILSON
GEORGE HILLIS'
1/ 1
OVRNIGHT ENV
23.00
SENDER SUBTOTAL 110.25
CONTINUED NEXT PAGE
FEC -M-145 9'84
iPR�f
Ex
BILL TO: PLATT SPARKS & ASSOCIATES INC SENDER ACTIVITY SUMMARY PAGE 1 OF
925 CAPITAL OF TX HWY S 9200 DATE 09/16/;
AUSTIN, TX 78746 TUVnTrC un e�cn_nnccn �rrn�srr \.n nes
TRACKING NOS
SENDER'S NAME AND
RECIPIENT INFORMATION AND
PACKAGES
NET
REFERENCE
ACCOUNT ADDRESS
PROOF OF DELIVERY
& WEIGHT
SERVICES
CHARGES
CHARGES
897213284
DANNY WILSON
BILL G SPENCER
1/ 6
OVRNIGHT ENV
34.00
PLATT SPARKS & ASSOCIATES INC
MITCHELL ENERGY CORP
DISCOUNT
-3.00
AUSTIN,ITAL OF TX HWY
PL
6995993 1
TX 78746
SPRINGIMBERLOCK
TX 77380 AA
DELIVEh
6704459 1
DROP OFF 08/27/86
D 08/28/86 09:10
SIGNED: B MCCLAIN
•
31.Oi
897213295 *
DANNY WILSON
TOM KOHUTEK
1/ NA
OVRNIGHT LTR
14.00
!
PLATT SPARKS & ASSOCIATES INC
WISENBAKER PRODUCTION CO
DISCOUNT
-3.00
925 CAPITAL OF TX HWY S 5200
400 INTERFIRST PLZ BLDG
AUSTIN, TX 78746
TYLER
75702 AA
6832273 1
DROP OFF 08/28/86
08/29/86 0a:39
SIGNED: M HUNT
11.01
897213321
DANNY WILSON
GEORGE HILLIS'
1/ 1
OVRNIGHT ENV
23.00
PLATT SPARKS & ASSOCIATES INC
BASS ENTERPRISES PROD CO
DISCOUNT
-3.00
925 CAPITAL OF TX HWY S 4200
201 MAIN ST
AUSTIN, TX 78746
FORT WORTH, TX 76102 AA
6866802 1
DROP OFF 09/02/86 120.01
FEC -M-145 9184
ETC
BILL TO: PLATT SPARKS & ASSOCIATES INC
925 CAPITAL OF TX HWY S 9200
AUSTIN, TX 78746
(CONTINUED NEXT PAGE
RECIPIENT ACTIVITY SUMMARY PAGE 3 OF
T\RIATI•C \u. DATE 09/16/f
TRACKING NOS
REFERENCE
SENDER'S NAME AND
ACCOUNT ADDRESS
'-
RECIPIENT INFORMATION AND
PACKAGES
PROOF OF DELIVERY
& WEIGHT
SERVICES
CHARGES
CHARGES
457633621
JACK CARNAL
WESTAR
GEORGE SEARS
1/ 1
OVRNIGHT ENV
23.00
301 S TAYLOR 3RD FLR
PLATT SPARKS & ASSOCIATES INC
925 CAPITAL OF TX HWY S #200
AMARILLO, TX 79101
AUSTIN TX 78746 AA
6995993 1
SHIPPED 09/04/86 BY 117905624
SIGNED: P THOMAS86 09:43
•
23.0(
RECIPIENT SUBTOTAL 23.00
PAY THIS AMOUNT 133.2E
FEC -M-145 9184
INVOICE
Date 10-1-86
Client Platt, Sparks & Associates
No. Hours
D �c��rt;cn
Rote Amount
9.5
ADMINISTRATIVE-(4zubo_ff)
16.50
156.75
1.5
it -(For Lisa -Locating Paper)
16.50
24.75
33.25
ALABAMA FERRY
16.50
548.63
Blacklines
12.00
Tapes
4.50
Xerox Acetate
60.48
Sticky -Back
3.00
Merlin Lettering
28.65
Mylar
3.12
Canon Copies
6.00
Sales Tax
.74
SUBTOTAL
667.12
17.75
CONCHO BLUFF
16.50
292.88
Ammonia Mylar
6.50
Merlin Lettering
9.60
Sales Tax
.40
SUBTOTAL
309.38
2.75
CONOCO
16.50
45.38
4.25
FINKELSTEIN
16.50
70.13
12.5
GLENN PETROLEUM
16.50
206.25
Merlin Lettering
3.30
Blacklines
5.00
Ammonia Mylar
3.25
Sales Tax
.51'
SUBTOTAL
218.31
35.5
LUBBOCK PIPELINE EXHIBIT
16.50
585.75
Blackline
1.50
Merlin Lettering
9.45
Sales Tax
.10
SUBTOTAL
596.80
TOTAL
1973.11
PLEASE MAKE CHECK PAYABLE TO PAUU!`JE JACOBSON
RECEIVED
Thank You!
/kj 6 �5
PLATT, SPARKS A ASSOCIATES, INC.
925-A Capital of Texas Highway, Suite 200 SEA 2•-01986
Austin, Texas 78746
(512) 327-6930
Mesa Operating LTD Partnership
P. 0. Box 2009, One Mesa Sq.
Amarillo, Texas 791898-2009
Attn: Edward K. Norfleet, Jr.
RE: Lubbock Pipeline Dispute
PREVIOUS BALANCE
INTEREST IS 0.5 % OF PAST DUE BALANCE
DATE PROFESSIONAL SERVICES RENDERED
(SEE ATTACHED LIST)
TOTAL FOR THE ABOVE SERVICES
DATE EXPENSES
08-29-86 Reproduction and Telephone
TOTAL FOR THE ABOVE EXPENSES
BILLING DATE 09-23-86
ACCT NO. PSA000178-0-1A
$1,150.67
$0.03
TIME
16.50 $1,980.00
$32.00
$32.00
TOTAL $3,162.70
PAYMENT RECEIVED
08-25-86 $1,144.95
TOTAL PAYMENTS $1,144.95
AMOUNT DUE $2,017.75
THANK YOU - INVOICE DUE "PON RECEIPT
.5% Interest Per Month to Balance Due After 30 Days
Payments Received After the 1st Will Be Credited on Your Next Invoice
` PLATT, SPARKS & ASSOCIATES, INC.
925-A Capital of Texas Highway, Suite 200
Austin, Texas 78746
(512) 327-6930
Mesa Operating LTD Partnership
P. O. Box 2009, One Mesa Sq.
Amarillo, Texas 791898-2009
Attn: Edward K. Norfleet, Jr.
DATE PROFESSIONAL SERVICES RENDERED
08-12-86 Prepare for meeting with attorneys on
depositions for RRC personnel.
08-14-86 Depositions of J. Sanchez
08-15-86 Depose M. Fegenbush at RRC.
08-25-86 Prepare deposition questions for Dr.
Podio
08-26-86 Meet with G. Bernal. Discuss case.
Begin expert opinion draft.
08-29-86 Discuss expert opinion draft with
attornies.
PAGE 2
BILLING DATE 09-23-86
ACCT NO. PSA000178-0-1A
INDIV TIME
GFS
7.00
$840.00
GFS
4.50
$540.00
GFS
2.50
$300.00
GFS
1.00
$120.00
GFS
1.00
$120.00
GFS
0.50
$60.00
Dear John:
I have enclosed a copy of Ed Norfleet's letter to me with the
attached copy of the executed agreement. I had assumed that he had
returned to you the executed copy pursuant to our original request.
Upon rereading the letter, it appears that he has lost the original
but has had a copy executed. The enclosed copy contains the original
signature for Mesa. All marks on the document are Mesa's.
I would recommend that we stay with this agreement as is in that
if we execute a new agreement, Mesa may want to revise the amount
and respective percentages. As I previously indicated, the Pioneer
claim had to be reduced as a result of the inclusion of gas sales to
the City's other power plant which is no longer at issue in this
litigation. Consequently, the $699,683 remains the same for our
Holly Plant share, but the Pioneer share has been reduced from
$1,903,557 to $1,381,546. This would raise the City's share to 34.1%
of the expenses rather than 26.9%.
Very truly yours,
Thomas M. Pollan
TMP: ea
Enclosure
!e:
BICKERSTAFF, HEATH
& SMILEY
STEVE BICKERSTAFF
C. ROBERT HEATH
400 WEST 15TH STREET, UNITED BANK TOWER. SUITE 1419. AUSTIN. TEXAS 78701-1646
MARTHA E. SMILEY
THOMAS M. AOLLAN
ANN CLARKE SNELL
(512) 472-8021
ANDREW KEVER
TELECORY NO. 4720830
CAROLYN E. SHELLMAN
DOUGLAS G. CAROOM
LINDA AAKER
JIMMY ALAN HALL
SUSAN C. GENTZ
December
19, 1986
ROBIN A. CASEY
KATIE BOND
CAROLINE SCOTT
MANUEL O. MENDEZ
SYDNEY W. FALK. JR.
DAVID MENDEZ
RICARDO J. NAVARRO
MARCIA NEWLANDS FERO
Mr. John C. Ross, Jr.
City Attorney
P. 0. Box 2000
Lubbock, TX 79457
RE: Pioneer Corporation
v.
Bullock
Dear John:
I have enclosed a copy of Ed Norfleet's letter to me with the
attached copy of the executed agreement. I had assumed that he had
returned to you the executed copy pursuant to our original request.
Upon rereading the letter, it appears that he has lost the original
but has had a copy executed. The enclosed copy contains the original
signature for Mesa. All marks on the document are Mesa's.
I would recommend that we stay with this agreement as is in that
if we execute a new agreement, Mesa may want to revise the amount
and respective percentages. As I previously indicated, the Pioneer
claim had to be reduced as a result of the inclusion of gas sales to
the City's other power plant which is no longer at issue in this
litigation. Consequently, the $699,683 remains the same for our
Holly Plant share, but the Pioneer share has been reduced from
$1,903,557 to $1,381,546. This would raise the City's share to 34.1%
of the expenses rather than 26.9%.
Very truly yours,
Thomas M. Pollan
TMP: ea
Enclosure
Mr. Thomas M. Pollan
Bickerstaff, Heath & Smiley
Suite 1419, United Bank Tower
400 West 15th Street
Austin, TX 78701
Dear Tom:
December 3, 1986
Re: Pioneer Corporation v. Bob Bullock
At long last, you will find enclosed herewith a copy of the Agreement
Regarding Tax Refund Litigation dated May 8, 1986, which has now been
executed on behalf of Mesa Operating Limited Partnership. As we discussed,
rather than rewriting the agreement, I have merely altered the signature
line to show that Mesa Operating Limited Partnership is executing as
successor in interest to Pioneer Corporation. As I also told, you the
original was lost and so I had only a copy for execution. I trust this
will suffice. I apologize for the delay. If I can be of further
assistance to you, please do not hesitate to contact me.
ZCj
'C 4
Edward K. N f r
or Leet, Jr.
tg
cc: Gilbert J. Bernal, Jr.
MESA LIMITED PARTNERSHIP
ONE MESA SOUARE / POST OFFICE BOX 2009 / 806 :378-1000 / AMAPR I M. TFXAR 7PIPP-annq
JCR:cl
'Resolution #2311
AGREEMENT REGARDING TAX REFUND LITIGATION
19
This agreement, made and entered as of the 8th day of
May
1986, by and between Pioneer Corpora.tion and the
City of Lubbock.
WITNESSETH:
WHEREAS, Pioneer Corporation ("Pioneer") and the City of
Lubbock ("City") are presently in litigation to recover from the
. i
State Of" -Texas gross receipts taxes paid by Pioneer in which the
City has=a direct pecuniary interest by virtue of contractual
agreements between the City and Pioneer and Pioneer is the
successor of the right to refund gross receipts tax based on its
sales through its transmission pipeline-,..s�stem in the City of
Lubbock pursuant to contracts of Westar Transmission Company and
Pioneer Natural Gas Company, formerly divisions of Pioneer.
Pioneer and the City entered into an agreement as of December 14,
1979 which was amended on December 10, 1981, the effect of which-
. -was to provide that the City would be the ultimate recipient of
any benefit to Pioneer resulting from a favorable final deter-
mination concerning the gross receipts tax paid on sales of../`
natural gas at the City's Holly Avenue Plant to the extent that
the tax paid was actually passed through and paid by the City.
Because the pass-through of the gross receipts tax to the
City was phased in and because of questions relating to the
application of the formula for determining the amount of refund,
the parties have agreed to the amount of refund that the City is
entitled to receive in the event a refund is obtained relating to
the sales at the Holly Avenue Plant. It is accordingly agreed by
the City apd Pioneer that in the event that the gross receipts
J-1 tax applicable to distribution pipeline companies is not appli-
cable°to the sale of gas at the Holly Avenue Plant, the City
would be entitled to a refund $699,683.00. Z
Pioneer is claiming a total , ,~2.40.31 which repre-
sents gross receipts taxes paid to the State for sales of gas at
the City's Holly Avenue Plant plus sales of gas to three in-
dustrial customers from its transmission pipeline system. It has
become necessary for Pioneer and the City to retain an expert
witness to assist in this case. The parties agree that they will
each pay the percentage total that they would receive based on a
recovery on the entire claim. The City of Lubbock will be
responsible for 26.91 of the cost relating to the expert, and
Pioneer Corporation will be responsible for 73.1' based on the
following:
_ Pioneer Corporation $1,903,557.31 (73.1w)
'! City of Lubbock 699,683.00 (26.90)
$2,603,240.31- (1000)
It is agreed that the expert will send the original of his
bill to Pioneer with a copy to the City. Pioneer will pay the
entire bill, and the City will reimburse Pioneer for 26.91 of the
total within 30
days after Pioneer has notified the City
that payment has been made.
IN WITNESS WHEREOF, the parties have caused this agreement
to be -..duly executed on this the day and year first above written.
MESA OPERATING.LIMITED PARTNERSHIP,
ATTEST:
Assistant Secretary
ATTEST:
Ranette Boyd, City Secre a y\
APPROVED AS TO CONTENT:
Robert Massengale
Assistant City Manager
successor in interest to
PIONEER CORPORATION
by Pickens Operating Company, General Partne
BY
au Gain, President (3
CITY�OF LUBBOCK:
B.C. ICHINN,- MAYOR
APPROVED AS TO FORM:
ohn C. Ross, Jr.
qty Attorney