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Travis County District Judge John Dietz Rules "Below-Ground" Equipment Used in Processing of Oil and Gas Qualifies for Texas Manufacturing Exemption

Press Release Apr 16, 2012

Dallas, Texas – Ryan, a leading global tax services firm with the largest indirect tax practice in North America, today announced that a dispute between Southwest Royalties, Inc. (“Southwest Royalties”) and the State of Texas regarding the taxability of oil and gas production equipment used “below-ground” has been decided by Travis County District Court Judge John Dietz. In Southwest Royalties, Inc. v. Combs, Judge Dietz ruled from the bench that “below-ground” equipment used in or during the actual processing of oil and gas qualifies for the manufacturing exemption under Texas Tax Code Sec. 151.318. It is expected that Judge Dietz will issue a signed judgment within a week. Ryan serves as tax advisor to Southwest Royalties and its law firm, Scott, Douglass & McConnico, LLP, in connection with this matter and played a key role in developing the arguments that Judge Dietz found persuasive.

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Ryan, an award-winning global tax services and software provider, is the largest Firm in the world dedicated exclusively to business taxes. With global headquarters in Dallas, Texas, the Firm provides an integrated suite of federal, state, local, and international tax services on a multijurisdictional basis, including tax recovery, consulting, advocacy, compliance, and technology services. Ryan is an 11-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan’s multidisciplinary team of more than 4,800 professionals and associates serves over 30,000 clients in more than 80 countries, including many of the world’s most prominent Global 5000 companies. More information about Ryan can be found at


Melodie Elliott
Director, Content & Communications Marketing