State
THE BATTALION
WEDNESDAY, JULY 1, 1981
Page 7
tates join lawsuit in constitutionality case
Texas and Louisiana challenge windfall tax
Huebners*
v is thatifjd-
't hits (1^,
i rest assure;
United rress International
. CHEYENNE, Wyo. — A federal judge
"'“ ' ‘‘r r '-11 owed Texas and Louisiana to join in a lawsuit
1st ol tin i^hallenging the constitutionality of the federal
/indfall profits tax on oil and took under advise-
‘ peninsula
iaent a motion by the U.S. government to dis-
thr laundisftis^ the suit.
tlieir 20s i The Independent Petroleum Association of
„ imfcrica filed the suit last year on behalf of 12,000
mn nut independent oil producers and 2.5 million prop-
rty owners who receive royalties on oil produc-
>e land on i:.j 0 n.
1 and wellL U S. District Judge Ewing T. Kerr Monday
;ave attorneys for both sides 30 days to file sup
plemental briefs on the motion for dismissal.
Kerr also allowed the states of Louisiana and
Texas to join the suit amid claims Texas would
lose $300 million per year because of the tax.
The windfall profits tax is applied to added
revenues reaped by oil producers as a result of
the government’s decision to decontrol gradually
domestic oil prices.
The tax was enacted in March 1980 and is
expected to raise $227 billion in revenue over the
next 10 years.
Mountain States Legal Foundation Attorney
Gale Norton, arguing on behalf of the states, said
Louisiana and Texas were challenging the tax’s
constitutionality because nearly one-half of the
geographical area of Alaska is exempt from the
tax.
“If half the state of Texas was exempted from
the tax, I doubt we’d be here today,” Assistant
Texas Attorney General Stuart Fryer told Kerr.
Fryer said Texas is losing an estimated $300
million in revenue annually because the tax dis
courages production on stripper wells — wells
that produce less than 10 barrels a day — and
other marginal production wells.
Fryer said energy is the dominant industry in
Texas, and any adverse effects felt by the energy
industry affect the entire population because of
lost state revenues.
The IPAA also contends those required to pay
the tax are being forced to bear a "disproportion
ate’ tax burden.
IPAA attorney Harold Scoggins said the wind
fall tax was enacted with a “minimum level of
rationality,’’ as part of a program designed to
increase U.S. energy production but having just
the opposite effect.
He said the windfall tax was “the largest tax of
any kind ever imposed by Congress” and said it
amounted to a “seizure” of property.
Government attorney Robert Baker, however,
said the windfall tax is “one of the most beneficial
and important acts ever passed by Congress” and
that any problems with it should be addressed by
Congress, not the courts.
Baker also said the government opposed inter
vention by the states because states do not pay
taxes and cannot be granted relief in a tax case.
Baker said Texas and Louisiana were acting as
“volunteers for a very small but influential group
of its citizens. ”
Kerr, in granting the motion to intervene,
said: “The modern policy seems to be, Every
body is entitled to be heard.’ That’s probably
what’s cluttering up the courts today, but that’s
the policy.”
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SEVEN DAYS
JULY 2 THRU JULY 8, 1981 IN BRYAN - COLLEGE STATI0F
State law
tossed out
by judge
United Press International
HOUSTON — A federal judge
has declared unconstitutional a
state law which allows police to file
criminal charges against people
who refuse to identify themselves
to law enforcement officials.
U.S. District Judge Woodrow
Seals made his ruling Monday in a
1979 ease involving a Lufkin man
arrested by Houston police in
1975.
“Individuals stopped by the
police merely on the basis of suspi
cion have a right not to be
arrested, a right to remain silent
and, as a corollary, a right not to be
arrested if they choose to remain
silent. Seals said.
In November 1975 Lufkin
attorney Gilbert Manley Spring
was arrested by Houston police
after he was accosted by some
women the officers said had been
charged previously with prostitu
tion.
Spring refused to identify him
self to police and was arrested. He
was convicted in municpal court in
March 1976 and fined $100. His
appeals through the state courts
were unsuccessful, but he re
mained out of jail because Seals
had stayed the sentence.
AT&T plan
for service
criticized
United Press International
AUSTIN — The president of
Harte-Hanks Communications
Inc. said Tuesday private com
panies will be forced out of the
electronic information service
market if American Telephone
and Telegraph and its telephone
company affiliates are allowed to
enter the market with “cozy re
lationships” such as one proposed
for a six-month Texas trial.
Robert Marbut told a Public
Utility Commission hearing ex
aminer his company, one of the
state’s leading newspaper pub
lishers, is considering entering
the electronic information service
market, but probably will not do
so if Southwestern Bell and AT&T
are permitted to go ahead with
plans for a six-month trial of such
service in Austin.
The Texas Daily Newspaper
Association is asking the PUG to
order the telephone company to
stop all preparations for the elec
tronic information service trial,
which would involve about 700 re
sidences and businesses.
TDNA attorneys during two
days of hearings have meticulous
ly introduced and explained more
than 50 documents they say show
Bell has provided AT&T with in- ‘
formation, personnel, customer
lists and credit information it
would not make available to other
firms entering the electronic in
formation service market.
“Once we found out about this
trial, and about this relationship
where AT&T is going to be an
electronic publisher with inside
information they had, there is no
reason for us to want to get into
this market until the ground rules
are made clear,” Marbut said.
Marbut said it would be a kami
kaze effort for a private company
to compete against an AT&T- ’
Southwestern Bell alliance, and
said, “As chief executive officer of
a company, I don’t like those kind
of missions.
“What they are wanting to do in
this trial is anti-competitive, and if
they are allowed to do it, the trial
will give them an unfair advan
tage.”
The
Battalion
Since 1878