Rec. tourism. In 1981 earnings fell to $145.2 million despite revenues of almost $1,277.5 million. As the largest owner of environmentally sensitive wetlands in the continental United States, LL&E had long been careful to protect its investment. Oil and Gas lease entities located near Louisiana Land & Exploration Co.. Despite dramatic increases in construction and operating costs of Claus sulphur recovery facilities since 1968, the sulphur recovery industry has continued to grow, partly because air-pollution controls mandate the recovery of sulphur from the hydrogen sulfide removed from oil and gas wells even when it may not be economically attractive to do so. v. Canada by the British in the 18th-c); areas devastated by Hurricane Congress responded to this public outcry by repealing the percentage depletion allowance as applied to the major integrated oil companies.". Moreover, respondent's reading of section 613A could discourage oil and gas production by independent producers and royalty owners, which would be contrary to congressional intent. Oil and Gas lease entities located at the same street address in New Orleans, Louisiana as Louisiana Land & Exploration Co.. As the company expanded into working interests, it hired geologists, geophysicists, and engineers. Until 1982, the Frasch mining industry was the dominant source of sulphur in the world. WebThe Louisiana Land & Exploration Co is listed as an officer of another company. These moves strengthened LL&E's overall position, but plunging oil prices and the Copper Range charge took their toll. Outside of Louisiana, Youngs acquired mineral rights and royalty interests on 152,870 acres in Texas, New Mexico, North Dakota, South Dakota, Montana, Colorado, Florida, and Mississippi. 1965), cert. On this reasoning, respondent concludes that "natural gas" within the meaning of section 613A includes all gases produced from an oil and gas well because all such gases are depletable under section 611. 7770-7773, 7813 (1975). WebIn 1946, this original structure was acquired from the Sun Oil Company and transported by barge from Cocodrie, LA to its current location in Paradis. area, List of school districts in WebThe Louisiana Land and Exploration Company Address: 909 Poydras Street P.O. tax. Rec. Louisiana Land and Exploration Company (LL E) filed this possessory action on November 12, 1992, relating to two sections of marshland property (Sections 27 and 28, Township 19 South, Range 20 East) in Lafourche and Terrebonne Parishes and seeking to stop the individual defendants from their alleged acts of trespass and damage on the property. Spots was recovered from an adjoining area in 1986 by the original land owners, Louisiana Land and Exploration Company, and lived on the grounds until he was donated to the Audubon Zoo in 1990. Natchez, Jean Lafitte National Historical Park and A number of members criticized the provision for unfairly singling out the oil and gas industry. In 1987 the company began to acquire newly opened low cost leases in the shallow waters of the Gulf of Mexico. Commissioner v. Engle, 464 U.S. at 218. These diversification adventures were possible in part because of high profits in the oil industry. Forbes later criticized the Jacintoport purchase, maintaining that LL&E had gotten into industrial real estate, "just at the time when the play was going out of it along the Gulf Coast.". It was solely Texaco's choice to meet its obligations to these customers with LL & E's gas. On November 7, 1938, LL&E and Texaco amended their contract. Sec. Steward announced that LL&E would sell nonstrategic oil and gas properties and use the proceeds to repay long-term debt and repurchase up to 10 percent of outstanding stock. Petitioners are calendar year, accrual method taxpayers. cattle, sugarcane, poultry and eggs, dairy products, and Rec. We disagree. WebThe company changed its name to St. Mary Land & Exploration Company on October 13, 1992 and then shortly thereafter, went public on the NASDAQ exchange with the ticker symbol MARY. 121 Cong. 8128, and Senator Curtis added, "Our first objective should be the production of more gas and oil." Thus, respondent's proposed statutory construction, which assumes an inadvertent failure by Congress to draft the right language, cannot be harmonized with the provision for depleting sulphur pursuant to section 613(b)(1). The company had few employees and operators shouldered the major expenses of exploration and development. Earnings recovered in 1989 as oil prices rose while replacement costs remained low. Foreign reserves are located in the U.K. and Dutch sectors of the North Sea, Canada, and Columbia. Listed below are the cases that are cited in this Featured Case. In the early 1980s, industry economics changed LL&E's fortunes. In the case of oil and gas wells, "gross income from the property" has been interpreted to mean gross income from the sale of the property at the "well-mouth," i.e., before conversion or transportation. 30292-85, 37799-85, 47753-86. And they paid us a $4 million bonus on the lease!". 1763, then to the USA in 1783; W region acquired by the USA in the Respondent raises a final argument for the first time on brief that sulphur derived from hydrogen sulfide cannot be depletable pursuant to section 613 because it is not possible to calculate "gross income from the property" with respect to the sulphur as section 613(c) requires. Congress thus retained percentage depletion for small, independent producers to encourage domestic production. 501, 89 Stat. WebContinuing the marriages among energy companies, Burlington Resources Inc. agreed to acquire Louisiana Land & Exploration Co. for about $2.44 billion in stock. William M. Linden, Ewing Werlein, Jr., Christine L. Vaughn, John W. Leggett, and Elaine Drodge Koch, for the petitioners. After reviewing the law and the facts, we find that the district court was correct in its determination. LA. The Louisiana Land and Exploration Company (LL&E) is one of the largest independent oil and gas exploration companies in the United States. (A salt dome is a raised central area of salt or rock, around which beds of sedimentary rock dip in all directions. Caspary's charges had some legitimacy. chief cities, New Orleans and Shreveport; bounded S by the Gulf of Oil and gas often become trapped in the pockets that form around these structures.) The diagram on the facing page summarizes the sour production processing system used at the Jay Field Wells. Pub. Thus, it falls in the category of all other minerals described in section 613(b)(7) and is eligible for percentage depletion at the rate of 14 percent. Given narrow margins, however, LL&E's major interest was in purchasing additional interests in proven properties. Louisiana Historical Society and several works Click the citation to see the full text of the cited case. Pierre-Franois-Xavier de Charlevoix, Dumont (as published LL&E traces its roots to the 19th century, when midwestern businessman Edward Wisner moved to Louisiana for his health. (Cf. Seeking new profit sources and seeing links between fossil fuels and mineral extraction, Phillips laid out $51 million for the Copper Range Company in May 1977. LL&E reported 1986 losses of $20.6 million. LL & E's position is that Section 105 does not determine the ceiling price for this gas because the gas is not "subject to" any contract; instead, the LL & E gas is being used to fulfill these particular contracts solely because Texaco has chosen to use it rather than to use gas from other reserves. In 1975 the company opened a small refinery in Mobile, Alabama, to process 30,000 barrels a day of Jay Field crude. WebArising under the 2006 version of La. Hydrogen sulfide is never used as a fuel and is not sold under long-term fixed price contracts. 7295. In addition to Texaco, which was still its major leaseholder, LL&E secured royalty agreements with Phillips Petroleum Co., Stanolind Oil & Gas Co., Alder Oil Co., and Plymouth Oil Co., among others. 82-17, 1982-1 C.B. In 1989 the Department of Interior recognized this effort and awarded LL&E its Conservation Award for Respecting the Environment. Therefore, we hold that the district court correctly concluded that Section 109 of the NGPA regulates the ceiling price for the gas in question. Pursuant to section 613A, oil and gas wells qualify for percentage depletion in narrowly limited circumstances. 1971). COMMISSIONER OF INTERNAL REVENUE, RESPONDENT, United States Tax Court.https://leagle.com/images/logo.png. Login | Register; Home; Operators; Leases; Wells; Permits; Pricing; Search; Map; Sweet Lake Land And Oil Co 001: API No. We conclude that in drafting section 613A, Congress intended to limit percentage depletion only for income from hydrocarbon fuels. The capital stock of LL E is registered with the Securities and Exchange Commission ("SEC") and is traded on the New York Stock Exchange. 1885). Contact Information Website lle.com Ownership Continuing to diversify, in 1968 Graham obtained the rights to participate in the resort development of approximately 50,000 acres on the western half of Molokai Island, Hawaii--an island previously best known for its leper colony. As on previous occasions, LL&E's involvement was a financial one. on the history of New Orleans (q.v. WebThe company's petroleum operations are conducted in the continental United States, the federal offshore area in the Gulf of Mexico, the North Sea, Colombia, and Indonesia. 7239 (remarks of Senator Hollings). A "warranty" contract is an arrangement whereby the producer is obligated to deliver to the purchaser certain quantities of gas; the source of the gas is unspecified and the producer may therefore fulfill his obligation from any source he chooses. Natural gas, in contrast, is a broad concept encompassing many types of gases and is, therefore, more difficult to define. Section 613(b)(7) provides for percentage depletion at 14 percent for "all other minerals" except: Because petitioners' sulphur was not extracted from a mine but from hydrogen sulfide produced from oil and gas wells, respondent argues that the income from the sulphur is depletable, if at all, pursuant to section 613(b)(7) as an "other mineral." All the gas involved in this dispute is being used by Texaco to service warranty contracts Texaco entered into with intrastate industrial consumers prior to 1978, when the NGPA was enacted. 121 Cong. Hydrogen sulfide and carbon dioxide are contaminants of natural gas.3 Sour gas cannot be used as fuel; the hydrogen sulfide and carbon dioxide must first be removed. Construction began on a new catalytic reformer that would provide more highly valued refined products. 613(b)(1)(A). Join our mailing list to get alerts for lease listing updates, new features, and special opportunities. Rul. The LOUISIANA LAND AND EXPLORATION COMPANY Since that time, however, the amount of sulphur recovered from hydrogen sulfide has been greater. It held working interests but did not actively manage projects. "It was a very unusual contract for 1928," LL&E president Ford Graham told Dun's Review in 1965. WebIn 1988, the company was formed to own the resource assets of Burlington Northern Railroad. In 1981 he budgeted a still-record $653 million for exploration and development. Lease handled by the Bureau of Land Management are not mapped by latitude and longitude, instead, these leases harken back to the Public Land Survey System. We find that it was appropriate, and therefore affirm the ruling of the district court. Prior to 1975, section 613 allowed percentage depletion for oil and gas wells. 979 (1961), affd. In 1925 speculator Edward Simms approached Timken with an idea for a company that would explore for oil in the almost 600,000 coastal acres Timken then controlled. around New Orleans; special population groups of Creoles (French At Furnel, Inc. our goal is to find new ways to support our customers with innovative design concepts thus reducing costs and increasing product quality and reliability. State in S USA, 4638 (1975); S. Rept. Select a reason Rate this page Send feedback UBS flags buyback possibility after Second-quarter earnings beat Raising this argument for the first time in his post-trial brief, respondent would argue a case that petitioners were unable to develop for trial and would, consequently, prejudice petitioners' case. Katrina (notably New Orleans) in 2005. See 121 Cong. ", But while Graham focused on controlling costs, he, like other CEOs of that era, also sought profits in new businesses. The town of Paradis, LA traces its history back to 1856 whenEdouard Paradis came down from Quebec, Canada to provide crossties for the railroads being constructed in St. Charles Parish. During these years, LL&E did virtually no operating of its oil projects. Representative William Green introduced an amendment to repeal percentage depletion for oil and gas during the floor debates in the House but the Senate Finance Committee deleted the provision. Texaco answered LL & E's petition for damages by denying that its royalty payments were improper, and subsequently filed a motion for partial summary judgment seeking a declaration that its payments were proper at least with respect to the gas it had produced from wells drilled prior to the enactment in 1978 of the Natural Gas Policy Act (NGPA), 15 U.S.C. counties); the Pelican State; name (after Louis XIV of France) In no case shall the allowance for depletion under section 611 be less than it would be if computed without reference to this section. The company became a public company . Lease No. Sec. In Herring v. Commissioner, 293 U.S. 322, 328 (1934), the Court held that the taxpayers were entitled to percentage depletion on bonuses received as advance payments for oil and gas to be extracted even though the well was not yet in operation, reasoning that the right to depletion was not conditioned on the existence of a well.11. Products; Resources; My Account; Talk to a D&B Advisor 1-800-280-0780. Business Directory. The percentage depletion rate for sulphur is 22 percent. Respondent argues that hydrogen sulfide has no commercial value before it is converted into elemental sulphur and that it is not possible to compute gross income from sulphur at the well-mouth because sulphur has not been produced at that point. Oil and Gas Indian Communitization Agreement, Oil and Gas Simultaneous Lease Drawing (SIMO) on Public Land, Oil and Gas Simultaneous Lease Drawing (SIMO) on Acquired Land, Oil and Gas Non-Competitive Lease on Acquired Land, Louisiana Land & Exploration Co. is listed with 11 total leases. L. 94-12, sec. ; Shamrock Oil & Gas Corp. v. Commissioner, 35 T.C. Epps. Specifically, "natural gas" subject to section 613A is defined to include "any product (other than crude oil) of an oil or gas well" if the product is eligible for depletion. In the Senate, Senator Dole remarked that "The 2,000 barrel * * * exemption from the depletion allowance repeal is vitally important to maintaining a high level of energy exploration and production," 121 Cong. Such allowance shall not exceed 50 percent of the taxpayer's taxable income from the property (computed without allowance for depletion). (e) DEFINITIONS.For purposes of this section. Moreover, because petitioners do not qualify for percentage depletion under the exemptions set forth in section 613A(b) and section 613A(c), the sulphur is also not eligible for percentage depletion under section 613A. At that time, the lodge housed Texaco released the fee lands belonging to the company not located on or near the domes or structures which were then being operated by Texaco. The Louisiana Land and Exploration Company LLC revenue is $280.0M annually. Sec. And when we're finished we don't own the computer or have the people on our permanent payroll. Docket Nos. See 121 Cong. When we have a project we'll go to Houston, rent a computer and run it through. We aim to provide a wide range of injection molding services and products ranging from complete molding project management customized to your needs. By year's end, Phillips could boast of $94 million in profits on sales of $1.25 billion. WebHistorical stocks and bonds, Autographs, Americana, Ephemera, Numismatics and all forms of paper collectibles specializing in Uncancelled bonds First, percentage depletion is permitted with respect to certain domestic gas wells for regulated natural gas, natural gas sold under a fixed contract, and natural gas from geopressured brine.
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