MISSOURI GAS ENERGY v. GRANT COUNTY ASSESSOR
2021 OK CIV APP 30
| Okla. Civ. App. | 2021Background
- Missouri Gas Energy (MGE) contracted with Southern Star to ship and store natural gas in Southern Star’s Webb storage facility in Grant County, Oklahoma.
- MGE claimed the Freeport (interstate commerce) exemption for gas that originated outside Oklahoma, was stored in Oklahoma ≤9 months, and was sold out of state; the County denied the exemption.
- Procedural history: trial court initially granted summary judgment to the County; on appeal this court reversed (MGE II) after a statutory amendment clarified oil/gas are "goods," and remanded to determine the exempt quantity.
- On remand MGE sought summary judgment that ≈87.5% of the gas it stored in Grant County qualified for the Freeport Exemption; the trial court granted summary judgment for MGE.
- The County appealed, arguing (1) MGE’s exemption application was untimely and void, and (2) because gas is commingled/fungible, MGE could not prove what quantity originated outside Oklahoma or was stored <9 months.
- The court found the critical facts undisputed (the identified portion originated out-of-state, turned every nine months, and was sold out-of-state) and affirmed judgment for MGE.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness/validity of MGE’s Form 901‑F application | Application is valid; prior appeal prevents relitigation | Application untimely/void under 68 O.S. §2902.2 | County's timeliness challenge barred by res judicata; issue already litigated in MGE II |
| Are oil/gas "goods" for Freeport Exemption | Oil/gas qualify as goods/merchandise under amended statute | Gas not "goods" (earlier trial-court position) | Legislative amendment and prior appellate decision treat oil/gas as goods; exemption can apply |
| Proof of origin/amount when gas is commingled/fungible | Allocation records and pipeline formula show MGE owned the listed volume originating out-of-state | Fungibility/commingling prevents proof of what portion originated out-of-state or was stored <9 months | Quantity shipped in/out is determinative per MGE I; MGE’s evidence established the exempt portion as a matter of law |
| Appropriateness of summary judgment | Undisputed material facts entitle MGE to judgment as a matter of law | Genuine dispute exists about origin/turnover preventing summary judgment | Summary judgment for MGE affirmed — no material factual dispute presented by County |
Key Cases Cited
- In the Matter of the Assessment of Personal Property Taxes Against Missouri Gas Energy, 234 P.3d 938 (Okla. 2008) (fungibility/tenancy‑in‑common principle; allocation formula determinative of ownership quantities)
- Missouri Gas Energy v. Grant County Assessor, 376 P.3d 923 (Okla. Civ. App. 2016) (remanded for determination of exempt quantity after statutory amendment)
- Read v. Read, 57 P.3d 561 (Okla. 2001) (res judicata principles)
- Brown v. Alliance Real Estate Group, 976 P.2d 1043 (Okla. 1999) (summary‑judgment standard)
- Vance v. Federal National Mortgage Assn., 988 P.2d 1275 (Okla. 1999) (summary‑judgment review standard)