State Ex Rel. Oklahoma Tax Commission v. Sun Co.

1 1 This case concerns the liability of Suno-co for gross production taxes on oil that was marketed under "barrel-back" arrangements between the producers and Sunoco. The Oklahoma Tax Commission contends that Su-noco is liable for additional taxes (1) on "barrel-back" purchases by Sunoco from 1984 and after, and (2) on an amount that Sunoco paid to settle a class action suit by royalty-owners over "barrel-back" transactions 1 . Under these "barrel-back" arrangements, Sunoco purchased oil at the lease and transported it to a market center. At the market center, Sunoco would sell the oil back…