Shell’s Arctic Oil Containment System Draws Washington Use Tax

A company that contracted with a Shell PLC unit to operate an oil containment system to support Arctic drilling owes Washington state more than $22 million in use taxes, a state appeals court ruled.

Superior Energy Services LLC failed to convince the Washington Court of Appeals, Division I, that the system fell under exemptions for leases of tangible personal property or vessels used to transport property or people in interstate commerce.

“Because Superior provided operators for the containment system, and because the vessel was not used primarily to transport property or people in interstate commerce, Superior does not qualify for ...