Holland & Hart Wins Utah Supreme Court Decision for Client Anadarko Petroleum

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Holland & Hart’s State and Local Tax group recently obtained a favorable ruling from the Utah Supreme Court for clients Anadarko Petroleum Corporation and Kerr-McGee Oil & Gas Onshore, L.P. regarding calculating Utah severance taxes on oil and gas

Holland & Hart’s State and Local Tax group recently obtained a favorable ruling from the Utah Supreme Court for clients Anadarko Petroleum Corporation and Kerr-McGee Oil & Gas Onshore, L.P. regarding calculating Utah severance taxes on oil and gas.

The Utah Supreme Court ruled that, in calculating Utah severance taxes on oil and gas, the Utah State Tax Commission is required to deduct federal, state and Indian royalty interests for all purposes of the severance tax calculation in a landmark case, Anadarko v. Tax Comm’n, 2015 UT 25. The Tax Commission historically allowed taxpayers to deduct such royalties from the tax base, but then would add the royalties back in when determining the tax rate to apply. Utah has graduated 3 percent and 5 percent rates. The Court overturned this practice, holding that the royalties must be removed for all purposes of the severance tax calculation.

The decision is a substantial victory for Anadarko and Kerr-McGee as well as all other oil and gas producers who pay federal, state or Indian royalties in Utah. Steve Young and Nate Runyan, members of Holland & Hart’s State and Local Tax practice, represented Anadarko and Kerr-McGee in the suit.

Holland & Hart’s State and Local Tax group is among the broadest and deepest in the Mountain West, and its attorneys possess decades of experience addressing state and local tax issues in Colorado, Utah, Wyoming, New Mexico, Idaho, Montana, Nevada, and surrounding states. The firm’s attorneys represent numerous industries throughout the region, including oil and gas, mining, telecommunications, cable, utilities, pipelines, retail, and small businesses.

The Tax group handles administrative, trial court, and appellate court litigation on state and local tax issues; lobbying on state and local tax issues before state legislative and administrative bodies and cities and counties; state and local tax planning; and transactional state and local tax advice.

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About Anadarko
Anadarko is among the world’s largest independent oil and natural gas exploration and production companies. Anadarko acquired Kerr-McGee in 2006. Anadarko is headquartered in The Woodlands, Texas, with regional U.S. and international offices.

About Holland & Hart
Holland & Hart LLP delivers integrated legal solutions to regional, national, and international clients of all sizes. Since its inception in 1947, Holland & Hart’s more than 470 lawyers have consistently been recognized by leading national and international peer and industry review organizations for innovation and dedication to the practice of law. For more information, visit http://www.hollandhart.com.

Holland & Hart joined the Salt Lake City legal community in 1994 with an office of four attorneys. Over the last 20 years, we've become a driving force in the Utah legal community with a full-service office of more than 90 lawyers providing advice on the wide range of legal issues facing Utah businesses. We offer our clients the value of local experience backed by a firmwide network of resources across the Mountain West and Washington, D.C.

Media Contact:
Tracy T. Taylor
Marketing Manager
Holland & Hart LLP
222 S. Main Street, Suite 2200
Salt Lake City, UT 84101
801.799.5804
tttaylor(at)hollandhart(dot)com

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Carol Sunnucks
Holland & Hart LLP
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