Eagerton v. Terra Resources, Inc.

This appeal necessitates further interpretation of the oil and gas severance tax statute which was the subject of Eagertonv. Exchange Oil and Gas Corporation, 404 So.2d 1 (Ala. 1981). The question is whether an exception in the statute swallows the rule as to gas producers. We hold that it does not, and reverse.

Terra Resources, Inc. (Terra), Petroleum Corporation of Texas (PETCO), and other companies filed suit to recover oil and gas severance taxes paid under protest. After a remand by this Court,1 the circuit court ordered a refund of substantial amounts of the tax paid on gas production.…