Saline But while business was very good in the late 1970s there were doubts about LL&E's future. WebThe La Land & Exploration Co M 001: API No. In 1982 matters continued to deteriorate as a recession caused a downturn in prices for liquids, lower demand and prices for copper, a halving of refinery margins, and reduced demand for natural gas. The company had few employees and operators shouldered the major expenses of exploration and development. The main lodge located at The Island was built entirely from cypress logged and timbered from the Des Allemands area. For example, we don't hesitate to use consultants. That year also marked Steward's conclusion of a property exchange that substantially increased LL&E's interest in the Madden Field in Wyoming. 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." Nevertheless, the company budgeted $200 million for capital and exploration and continued to drill in the Gulf of Mexico, Madden Field in Wyoming, the gas-rich Anadarko Basin of Western Oklahoma, the North Sea, southeastern Alberta, and Columbia, where it was garnering positive results from a drilling program begun in 1978. the Civil War, is Charles Gayarr's History of Louisiana Senator Hollings, a cosponsor of the amendment, added that "not one of those minerals [for which the depletion allowance was retained] has had a four-fold increase in price" as oil and natural gas had in the early 1970's. The Louisiana Land & Exploration Co Accordingly, we affirm the partial summary judgment granted by the district court and remand the case for a determination of damages. By 1970, an oversupply of sulphur seriously depressed prices,4 but the sulphur market recovered and the price of sulphur rose dramatically in the late 1970's and early 1980's.5. an economic revolution in the early 1900s when large deposits of Oil and Gas lease entities located near Louisiana Land & Exploration Co.. Here is a summary of how the competitors of The Louisiana Land and Exploration Company LLC compare to one another: Vastar Resources has the most employees (1,151). In addition, natural gas contaminated by hydrogen sulfide cannot be burned or transported through pipelines because its corrosive nature would damage the combustion equipment and the pipelines. The separated sour crude oil undergoes further treatment within the oil stabilization system, a pressurized vessel in which heat vaporizes and removes more of the dissolved sour gas (i.e., hydrogen sulfide, carbon dioxide, and natural gas). pelts, especially muskrat; second only to Texas in oil and natural When brought to the surface, all of the items in the wells are physically mixed. Under the agreement, LL&E retained a 25 percent working interest and a 20 percent royalty in Texaco's share of production. WebProperties Operated by Louisiana Land & Exploration Co View All Properties Operated by Louisiana Land & Exploration Co Recent Permits Filed by Louisiana Land & Exploration Co Company Contact Information These are the contact records we have for Louisiana Land & Exploration Co. The data are dynamic and may change over time. 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. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT, United States Tax Court.https://leagle.com/images/logo.png. 1885). Prior to 1975, section 613 allowed percentage depletion for oil and gas wells. Our conclusion is buttressed by the fact that all the existing authority on this point, although persuasive rather than authoritative, has interpreted the phrase "subject to" in Section 105 as requiring that a source of gas be described in a contract in order to trigger the Section's application. These could be different entities opperating out of the same locationlike a shared office space, PO Box, or family homeor one entity with multiple lease ID numbers. The exemptions from the general rule of section 613A(a) denying percentage depletion for oil and gas wells, however, function only when applied to hydrocarbon fuels. In exchange for this, Texaco would retain one-half of the royalties and profits payable to LL&E up to the amount of $800,000. notably Shreveport, Baton Rouge, and New Orleans.Isaacs, Finally in 2018, the camp was yet again renovated turning it into the beautiful lodge it is today. Petitioners claimed percentage depletion on sulphur during the years in issue in the following amounts: Respondent issued his notices of deficiency and petitioners timely filed petitions on the following dates: If we find that petitioners' sulphur production is eligible for depletion under section 613(b), respondent concedes that petitioners are entitled to the percentage depletion deductions claimed. Rec. Canada by the British in the 18th-c); areas devastated by Hurricane During the early 1980s, lackluster exploration results and fluctuating prices destabilized the company's finances and forced it to sell its non-oil and gas efforts and concentrate on finding new low-cost reserves. The, first commercial plant in the United States to use the modified Claus process was placed in operation in 1944. In 1943, for instance, LL&E employed only 24 people, yet earned $1.8 million on sales of $3.4 million. Petitioners contend that section 613 and section 613A are mutually exclusive and thus whatever is depletable under section 613 is not depletable under section 613A. tax rate is 1 percent: a .97 percent Louisiana sales tax As for the other genuine issues of fact which Texaco claims should prevent summary judgment herein, we find that they also relate solely to damages rather than to liability. Louisiana Land & Exploration Co At all relevant times, petitioner sold the sulphur it produced to Freeport Minerals Co. Louisiana Land & Exploration Co. is a corporation lessee based in New Orleans, Louisiana for 11 oil and gas leases8 are authorized and 2 are closed. Click to open an interactive map. Oil and Gas lease entities located at the same street address in New Orleans, Louisiana as Louisiana Land & Exploration Co.. 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). LA The Louisiana Land And Exploration Company Business In 1986 Williamson rid LL&E of the Copper Range Company--taking a $91 million charge in the process. LL & E, which leases certain lands to Texaco for the production of gas, brought suit against Texaco claiming Texaco had failed to pay proper royalties under the leases. Louisiana Since then, the area around Paradis has attracted generations of hunting and outdoor enthusiasts alike. Since that time, however, the amount of sulphur recovered from hydrogen sulfide has been greater. In 1928 LL&E signed a contract with Texas Co. (now Texaco) in which that company agreed to lease all of LL&E's acreage around ten productive salt domes. Land & Expl. The carbon dioxide is vented to the atmosphere. Rul. WebRead Louisiana Land and Exploration Co. v. Donnelly, 394 F.2d 273, see flags on bad law, and search Casetexts comprehensive legal database Louisiana Land and Exploration Co. v. Donnelly, 394 F.2d 273 | Casetext Search + Citator Louisiana. Petitioners are calendar year, accrual method taxpayers. According to the lower court, subsection (a) must be read in para materia with subsection (b) of Section 105 and subsection (a)(3) of Section 109, both of which refer to gas that is "subject to" or "not subject to" an existing contract. Congress' goal of encouraging domestic production would in that event be thwarted. Section 613A(c) provides limited percentage depletion for independent producers and royalty owners based on a depletable oil quantity of 1,000 barrels per day. (b) PERCENTAGE DEPLETION RATES.The mines, wells, and other natural deposits, and the percentages, referred to in subsection (a) are as follows: (7) 14 PERCENTall other minerals * * * For purposes of this paragraph, the term "all other minerals" does not include. tax. The percentage depletion rate for sulphur is 22 percent. At Furnel, Inc. we understand that your projects deserve significant time and dedication to meet our highest standard of quality and commitment. WebLL E is engaged primarily in exploration for and development of petroleum, natural gas and minerals. 82-17, 1982-1 C.B. For purposes of the preceding sentence, the allowable deductions taken into account with respect to expenses of mining in computing the taxable income from the property shall be decreased by an amount equal to so much of any gain which (1) is treated under section 1245 (relating to gain from disposition of certain depreciable property) as ordinary income, and (2) is properly allocable to the property. Texaco pays 75 percent and gets 60 percent. For this reason, Congress chose to define natural gas by reference to what gases are depletable pursuant to section 611. 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. Department of Natural Resources | State of Louisiana growth rate 2000?2005, Cane River National Heritage Area near Its industrial outputs include chemical products, Visit DandB.com to locate more business profiles. Business Week called Louisiana Land's record "dismal" and noted that despite spending $1.4 billion over the previous four years Phillips had failed to increase oil and gas reserves. 1971). Rec. Headquartered in New Orleans, it operates a crude oil refinery near Mobile, Alabama, and conducts exploration and production operations in the United States and selected foreign countries. The primary issue on appeal is whether that value should be determined under Section 105 of the NGPA, as Texaco argues, or under the higher ceiling price reflected in Section 109 of the NGPA, as LL & E claims. Rec. (various editions, culminating in 1866, 4 vols., with a THE LOUISIANA LAND AND EXPLORATION COMPANY DONATES THE ISLES DERNIERES CHAIN OF ISLANDS TO THE STATE OF LOUISIANA. In the 1950s, CEO Robert M. Youngs began to guide LL&E into other exploration, both on its own lands and on land it leased in other U.S. areas of production. Congress chose 6,000 to one as the conversion ratio because one barrel of oil has the equivalent heating value of 6,000 cubic feet of "natural gas." The Louisiana Supreme Court has already held that the value of natural gas upon which royalty is owed may not exceed the price to which sale of that gas is limited by federal regulation. LA Respondent further submits that Congress did not need to define "crude oil" because crude oil and brine water are the only minerals in liquid form extracted from oil and gas wells and are readily distinguishable. This criticism was borne out in December of that year when Lloxy paid $60 million for Gulf leases covering land under 300 feet of water. WebContinuing the marriages among energy companies, Burlington Resources Inc. agreed to acquire Louisiana Land & Exploration Co. for about $2.44 billion in stock. 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. Rec. Louisiana Land and Exploration Company Oil and Gas Producers | Houma, LA - Manta.com 121 Cong. 47, however, amended section 613 and added a new section 613A8 so that oil and gas no longer qualified for percentage depletion pursuant to section 613. The primary products from the Jay Field wells and processing facilities have been oil and natural gas. See 121 Cong. The district court's decision is a proper partial summary judgment under Louisiana Code of Civil Procedure article 966(C), which provides that summary judgment "may be rendered on the issue of liability alone although there is a genuine issue as to the amount of damages." In 1984 Phillips was replaced by E. L. Williamson, who worked to sustain profit margins and increase reserves. LL & E, which leases certain lands to Texaco for the production of gas, brought suit against Texaco claiming Texaco had failed to pay proper royalties under the leases. In the early 1980s, industry economics changed LL&E's fortunes. Petitioners, the Louisiana Land & Exploration Co. (LL&E) and Subsidiaries, are an affiliated group of corporations whose common parent is LL&E. Respondent argues that the amendments to section 613 were intended to eliminate percentage depletion not only for oil and gas but also for all other minerals produced from oil and gas wells except as provided in section 613A. These apparent anomalies are reconciled, in respondent's view, by attributing to Congress an unexpressed intent to deny any percentage depletion for nonhydrocarbon gases. In 1989 the Department of Interior recognized this effort and awarded LL&E its Conservation Award for Respecting the Environment. 8128, and Senator Curtis added, "Our first objective should be the production of more gas and oil." The well effluent from the Jay Field wells is treated in facilities adjacent to the wells. 613A(c)(3). Sulphur is not depletable under section 613(b)(7) because depletion for sulphur is expressly provided for in subsection (b)(1). Sulphur is depletable pursuant to section 613(b)(1) and not section 613(b)(7). In February 1943, President E. B. Tracy signed a contract with Duval Texas Sulfur Co. that gave that company sulfur exploration, development, and production rights on LL&E's land and leased interests in Louisiana's Terebonne Parish. Second, percentage depletion is permitted for so much of a taxpayer's "average daily production" of domestic crude oil or natural gas as does not exceed the taxpayer's "depletable oil quantity" or "depletable natural gas quantity." To this end, in 1991 LL&E acquired two interests in Australia and applied for a concession in Papua New Guinea. Rightor and John Kendall Smith. Epps. Percentage depletion for natural resources has been a part of the Internal Revenue Code since the Revenue Act of 1926. (1975). Gayle Land Exploration Co specializes in Oil And Gas Exploration Services. The Louisiana Land and Exploration Company -- Company (2) NATURAL GAS.The term "natural gas" means any product (other than crude oil) of an oil or gas well if a deduction for depletion is allowable under section 611 with respect to such product. It replaced 203 percent of expended reserves, adding 55 million equivalent barrels of oil and natural gas, 46 percent of which came from the East Brae Field. Its price is not regulated by the Federal Power Commission. As if to bear out this description, LL&E's mining operation lost $7.8 million in 1977 and $6.6 million in 1978. Section 613A seems also to use the term to mean a fuel, especially as applied in conjunction with Congress' goal of promoting domestic oil and gas production by subsidizing independent producers and royalty owners. The works of Albert Phelps and Grace King should also be mentioned among While entities may have multiple locations, this is based on the address registered for the lease. (Cf. 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. The LL & E leases require Texaco to pay royalties based upon a percentage of the value of the gas produced. Management trumped Caspary, however, when it pledged to spin off to stockholders a tax-sheltered royalty trust holding oil and gas properties that generated $30 million a year. Therefore, we hold that the district court correctly concluded that Section 109 of the NGPA regulates the ceiling price for the gas in question. 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. Copyright 2023 Web Solutions LLC. Court of Appeal of Louisiana, Fourth Circuit. In response, LL & E filed a cross motion for partial summary judgment to declare these payments improper, which was eventually granted by the district court. Whether it is filing a lease or researching one, the administering BLM office is going to be the definitive source. Because of the exception of subparagraph (C) and the restriction of subsection (d),9 respondent argues that this sulphur is not depletable under section 613. Pursuant to section 613A, oil and gas wells qualify for percentage depletion in narrowly limited circumstances. The following June a wholly owned subsidiary of LL&E, the Sun Fire Coal Company, began to develop an underground mine near Hazard, Kentucky. This appeal stems from the granting of a motion for partial summary judgment in favor of the Louisiana Land and Exploration Company (LL & E). Steward used excess cash flow--including $198 million from asset sales&mdash repurchase nearly 2.6 million shares and reduce LL&E's total debt by one-third. We offer full engineering support and work with the best and most updated software programs for design SolidWorks and Mastercam. 95, respondent considered whether carbon dioxide extracted from a carbon dioxide well for injection into oil fields as a drive mechanism for the recovery of oil is eligible for depletion pursuant to section 613 or section 613A. WebIn 1988, the company was formed to own the resource assets of Burlington Northern Railroad. hills; over half the land area forested, supporting a major lumber Click the citation to see the full text of the cited case. Respondent argues that the two provisions are interdependent in that section 613A(e)(2) defines natural gas in terms of products depletable under section 611 and section 613, and in enacting section 613A and amending section 613, Congress intended to transfer percentage depletion for all products of oil and gas wells to section 613A. Hydrocarbons are organic compounds containing only hydrogen and carbon and are most commonly used as fuels. Caspary's charges had some legitimacy. Rec. be cited: Jean-Bernard Bossu, Franois-Marie Perrin du Lac, The Louisiana Land and Exploration Company (LL&E) is one of the largest independent oil and gas exploration companies in the United States. It appears that the absence of the phrase "minerals from" from paragraph (C) was not an oversight. Earnings recovered in 1989 as oil prices rose while replacement costs remained low. The remainder of central and north Louisiana was home and the applicable percentage (determined in accordance with the table contained in paragraph (5)) shall be deemed to be specified in subsection (b) of section 613 for purposes of subsection (a) of that section. Louisiana land & exploration company Company Profile: 4638 (1975); S. Rept. The Louisiana Land and Exploration Company filed as a Foreign For-Profit Corporation in the State of Texas and is no longer active.This corporate entity was filed approximately eighty-four years ago on Monday, October 9, 1939 , according to public records filed with Texas Secretary of State.It is The Louisiana Land and Exploration Company explores, develops, and produces petroleum natural gas resources. The magazine went on to comment that LL&E's finding and developing costs were among the industry's highest and noted that the company had closed its Michigan copper mine after completing work on a $78 million dollar copper smelter. In 1946, this original structure was acquired from the Sun Oil Company and transported by barge from Cocodrie, LA to its current location in Paradis. The problem in this case arose because Texaco, in an effort to secure a market for natural gas when it was not a particularly valuable commodity, entered into long term sales agreements with Louisiana industrial consumers promising future delivery of gas at what are now below-market prices. 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. v. Louisiana Land and Exploration Co The company became a public company . We, therefore, hold that pursuant to section 613(b), petitioners are entitled to percentage depletion deductions in the amounts stipulated for sulphur produced from oil and gas wells. The sour gas streams from the separation system and the oil stabilization system, containing both natural gas and hydrogen sulfide, are combined and further treated in the acid gas removal system. After reviewing the law and the facts, we find that the district court was correct in its determination. In oil and natural gas were discovered; capital, Baton Rouge; other WebHistorical stocks and bonds, Autographs, Americana, Ephemera, Numismatics and all forms of paper collectibles specializing in Uncancelled bonds 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. Section 613,7 however, provides an allowance for depletion for certain mines, wells, and other natural deposits based on a specified percentage of the gross income from the property less any rents or royalties paid or incurred in respect of the property. Section 613(b) in general provides the list of minerals that are eligible for percentage depletion and specifies the percentage depletion rates. R.S. By year's end, Phillips could boast of $94 million in profits on sales of $1.25 billion. Also, the company opened its first regional office in Shreveport, LA after acquiring the oil and gas division of T.L. If gases that are never used as fuels, such as hydrogen sulfide, were considered natural gases for purposes of section 613A(c), the conversion ratio would be nonsensical. Field / Formation: LAKE DES ALLEMANDS / THE LA LAND & EXPLORATION CO U 004: Well Status: DRY AND PLUGGED: Well Type: Township Range Section: 13S 19E 022: Derrick Elevation: Members Only: Kelly Bushing Elevation: 612. posthumous and further expanded edition in Depletion generally is calculated based on the cost of the property. 4606 (1975). Deteriorating economic conditions, windfall profits taxes, high dry hole costs, narrower profit margins, and declining demand all pressured earnings. All Rights Reserved This implication, however, is improper given the historical application of the term "oil and gas well" in the depletion provisions to mean simply "oil and gas." 6903 (1975) (statement of Senator Bentsen). Section 613A was the product of congressional concerns about the nation's increasing dependence on foreign oil and large profits the major integrated oil companies were reaping. Click on the case name to see the full text of the citing case. Not satisfied? Rule 91(e), Tax Court Rules of Practice and Procedure. Louisiana Historical Society and several works Although there is scant legislative history on section 613A, the legislative record available leaves little doubt that section 613A was meant to apply only to hydrocarbon fuels. 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. Oil and Gas lease entities located at the same street address in New Orleans, Louisiana as Louisiana Land & Exploration Co.. There is no question that there are no particular gas reserves governed by warranty contracts entered into by Texaco. As a result of floor amendments by Senators Kennedy, Hollings, Bentsen, and others, however, the final bill included a provision eliminating percentage depletion for oil and gas wells with certain exceptions primarily for the benefit of small producers and royalty owners. Foreign reserves are located in the U.K. and Dutch sectors of the North Sea, Canada, and Columbia. Crude oil is measured and sold by barrels. Docket Nos. Sec. 7801 (remarks of Senator Bartlett) (criticizing amendment for altering percentage depletion only for oil and gas industry); 121 Cong. Milling, Benson, Woodward, Hillyer, Pierson & Miller, Charles D. Marshall, Jr.. The amine solution absorbs the hydrogen sulfide and carbon dioxide and natural gas flow out of the top of the contactor. St. Bernard Parish, Baritaria (Crown Point), and Acadiana 16. increasing; world famous for the jazz music which grew up in and Petitioners owned a working or operating interest in leases of oil wells in the Jay-Little Escambia Creek Field (Jay Field) in Escambia County, Alabama, and Santa Rosa and Escambia Counties, Florida. Louisiana. La Land 501, 89 Stat. cattle, sugarcane, poultry and eggs, dairy products, and When section 613A(e)(2) is read in conjunction with sections 611 and 613, together they function as a filter to exclude depletion allowances for anything produced from an oil and gas well except as permitted by section 613A(b) and section 613A(c). As LL&E operations grew, both sales and revenues increased. and paper industry; highly productive in agriculture; soybeans, Petitioners extracted four categories of products from the Jay Field wells: liquid hydrocarbons, gaseous hydrocarbons, nonhydrocarbon gases, and nonhydrocarbon liquids.2. Contact Information Website lle.com Ownership The company continued to look for new sources of oil and in October 1972 newly named CEO John G. Phillips announced a $75 million offering to finance a new subsidiary, Louisiana Land Offshore Exploration Co. (Lloxy), that would explore for oil and gas in the Gulf of Mexico.
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