Governor's Office of General Counsel and Criminal Justice et. MEMO TO: William P. Clements, Jr. FROM: David A. Dean Dt)e—A DATE: October 9, 1980 Austin, Texas 78711 Phone (512) 475-3021 RE: WINDFALL PROFITS TAX LITIGATION This memo is a follow-up to my earlier memo dated September 24, 1980 that described the status of the present legal challenges to the Windfall Profits Tax. We have received further information on the lawsuit to be filed tn Wyoming and thought it should be brought to your attention. Bud Scoggins, the General Counsel for the Independent Petroleum Association of America (I.P.A.A.), called Milo Burdette and told him that a lawsuit challenging the tax will be filed Tuesday, October 14 in Casper, Wyoming. The plaintiffs will include the I.P.A.A. as well as various independent producers and royalty owners in the area. Everyone involved is very anxious to gain the participation of various states, e54ciall/Zexas.., in the action. They realize your clear stand on the tax at-TT-believe it would benefit the lawsuit legally as well as politically. One of the major issues that forms a basis for the suit is a states' rights issue which begs for a state's presence. As you know, a large portion of Alaska is exempt from the provisions of this tax. The State of Texas and its citizens have a valid right to see that all states are treated equally. If we wish to pursue a legal challenge to this unfair tax, the Wyoming suit represents the best opportunity to do so. Mountain States Legal Foundation, which I described in the earlier memo, stands ready to represent the state or yourself free of charge. Of course, any other legal representation you desire could supplement the Foundation's expertise. Attached is a letter to Attorney General White which makes one final request for him to move to represent the State. If he remains reluctant to do so, the letter asks him to certify your ability to retain outside (counsel to represent the best interests of the State of Texas. In conjunction with the release of that letter, it may also be a good idea to announce your full support of the litigation to be initiated in Wyoming. If you want any additional information on the lawsuit, please let me know. DAD:shb Attachment Aos•%A.... 0— D ID A. DEAN General Counsel
