On April 12, 2013, in SOAH Docket No. 304-12-7285.90, Comptroller Hearing No. 104,440, the SOAH Court, Judge Victor John Simonds presiding, issued its Proposal for Decision (PFD) dismissing both a diesel fuels tax and a sales tax assessment against an oilfield service operator that had purchased and resold condensate, an unrefined petroleum product that is produced alongside natural gas or crude oil.  In its PFD, the Court ruled that diesel fuel was not the product purchased and resold by the taxpayer, but instead the product was actually condensate.  On the sales tax assessment, the Tax Division attempted to hold the taxpayer, as the seller, responsible for the sales tax because the seller had not obtained resale certificates from its gathering company customers on their purchases of condensate.  However, the SOAH Court stated in its PFD that as in the case of sales of bales of cotton or water, a resale certificate is not necessary to prove that a sale for resale occurred when sales of condensate are involved.  The taxpayer submitted proof that not only was the product purchased for resale, but that by its very nature the condensate had to be resold by the gathering companies in order to make money and because it cannot be used in its unrefined state.  The condensate could not be used until it was refined into useable petroleum products such as motor fuels.  The deadline for filing exceptions to the PFD is still open.  Gilbert Bernal and Greg Friend of Stahl, Bernal & Davies represent the taxpayer in this hearing.