Scatter Weapon Quality: A weapon with the scatter weapon quality can shoot two different types of ammunition. It can fire normal bullets that target one creature, or it can make a scattering shot, attacking all creatures within a cone. Cannons with the scatter weapon quality only fire grapeshot, unless their descriptions state otherwise. When a scatter weapon attacks all creatures within a cone, it makes a separate attack roll against each creature within the cone. Each attack roll takes a –2 penalty, and its attack damage cannot be modified by precision damage or damage-increasing feats such as Vital Strike. Effects that grant concealment, such as fog or smoke, or the blur, invisibility, or mirror image spells, do not foil a scatter attack. If any of the attack rolls threaten a critical, confirm the critical for that attack roll alone. A firearm that makes a scatter shot misfires only if all of the attack rolls made misfire. If a scatter weapon explodes on a misfire, it deals triple its damage to all creatures within the misfire radius.
It still rolls against touch AC within the first range increment.
Edit: Lady J, were you remembering dragon's breath cartridges? I get the two mixed up all the time.
So what is the 1st range incrament? 10' or the 15' of the cone with the dragon pistol?
Basically, both. The text and the table in the PRD say different things, so I am going by the text.
When firing a bullet, the dragon pistol has a range increment of 10' but does not have the scatter property.
When firing pellets, the pistol loses its range increments entirely but gains a 15' cone and the scatter property.