Richfield Oil Corp. v. United States

This is an action by plaintiff to recover taxes alleged to have been illegally assessed and collected. The taxes in question were collected pursuant to 26 U.S.C.A. § 3460 on the transportation by plaintiff of petroleum products by pipe line during taxable periods from May 1, 1950 to March 31, 1954. The facts are not disputed. Many are contained in stipulations made in the course of a pre-trial conference, dated March 5, and Stipulations of Facts, dated July 11, 1958, both of which the court adopts. The sole question presented is whether or not the disputed movements are exempt from taxation under the provisions of 26 U.S.C.A. § 3460 (c). 1

Plaintiff purchases and produces crude oil in California and transports it to its refinery near Wilmington where the oil is processed into finished products. Some of these are then transported through pipe lines from the refinery to storage tanks at plaintiff’s marine terminal at Long Beach. In due course they are loaded aboard tankers owned or chartered by plaintiff and shipped to its terminal at Richmond, California. The vessels are moored at plaintiff’s dock located upon land leased from Richmond (Parcel A), and by use of the vessels’ pumps,…