Phillips Petroleum Co. v. County of Lake

On June 30, 1976, Aminoil, Inc. (Aminoil), acquired the rights, as lessee under a geothermal lease, to drill for and produce geothermal steam from certain lands located in what is known as “The Geysers” area of Lake and Sonoma Counties, with the ultimate purpose of converting the steam to commercially valuable electric power. In October 1984 Phillips Petroleum Company (Phillips) acquired Aminoil and became the successor-in-interest to these rights. Between 1983 and 1987, Aminoil and Phillips filed five successive complaints against the County of Lake (County) seeking partial recovery of property taxes assessed against their “geothermal interests” during the tax years 1978-1984. These actions were consolidated below. The primary contention in these actions is that the County’s method of assessment is in violation of article XIII A of the California Constitution (Proposition 13). Following a court trial, the superior court agreed and awarded Phillips a tax refund in the amount of $3,611,569.88 plus $1,393,534.21 in interest and $3,137.08 in costs. The County appeals from the judgment. Phillips appeals from a postjudgment order, dated December 6,1991, denying its motion for…