Oil, Gas Groups Sue Texas City Over 'Discriminatory' Tax

Law360, New York (May 11, 2012, 9:27 PM EDT) -- Two oil and gas trade groups have sued Arlington, Texas, over changes to the city's fire code that will add $800,000 in extra taxes for oil and natural gas companies operating in the city.

The Texas Oil & Gas Association and the Texas Independent Producers & Royalty Owners Association sued the city on May 7 in Tarrant County Court, calling the new tax discriminatory and claiming that the move is an attempt by the city to fund an expansion of its fire department.

The city intends...
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