Northern Border Pipeline Co. v. South Dakota Department of Revenue

ZINTER, Justice.

[¶ 1.] Northern Border Pipeline Company operates an interstate pipeline business that provides transportation services to natural gas owners who desire to ship their gas. The South Dakota Department of Revenue (Department) assessed Northern Border for use tax on the value of the shippers’ gas that the shippers allowed Northern Border to burn as fuel in com-' pressors that moved the gas through the pipeline. The assessment was affirmed following an administrative hearing, but the circuit court reversed, holding that a tax exemption applied. The Department appeals, arguing that…