In this case, the district court determined that Texaco is liable to LL & E for paying royalties calculated upon the value of the gas as determined under the Section 105 contract price rather than the Section 109 ceiling price. WebThe Louisiana Land And Exploration Company LLC 806 Bayoo Black Drive Houma, LA Visit Website Categorized under Oil and Gas Producers Apache Louisiana Minerals LLC 1913 La The capital stock of LL E is registered with the Securities and Exchange Commission ("SEC") and is traded on the New York Stock Exchange. Senator Mansfield agreed that the bill limited the depletion allowance "for the oil and gas industry while it retains it for almost every other mineral-extractive industry, for * * * 108 items which are covered by the depletion allowance." Finally, respondent's interpretation of section 613A conflicts with normal usage of the term "natural gas" as meaning fuel. LL&E is a Maryland corporation having its principal office at New Orleans, Louisiana. At year's end, he was able to salvage earnings of $76.3 million despite mining operations that sustained a pretax loss of $38 million. 613A(c)(3). Learn more about the Bureau of Land Management, Public Land Survey System, and oil and gas leases. 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. Phillips, however, remained committed to Copper Range. The venture's finances faltered and in time there were foreclosures. In 1986 Williamson rid LL&E of the Copper Range Company--taking a $91 million charge in the process. And profit sharing on top of the royalty was unheard of.". Select a reason Rate this page Send feedback UBS flags buyback possibility after Second-quarter earnings beat Furnel, Inc. is dedicated to providing our customers with the highest quality products and services in a timely manner at a competitive price. In the contract, which was very generous for its time, Texaco agreed to pay LL&E a 25-percent royalty on production and 8 percent of its net profits on a dome-by-dome basis. It also sought to expand riskier but potentially more lucrative foreign exploration. 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. 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. Hydrogen sulfide is never used as a fuel and is not sold under long-term fixed price contracts. Brine water, water with a high mineral content, is the nonhydrocarbon liquid extracted from the Jay Field wells. Strong collaboration leads to effective conservation The diagram on the facing page summarizes the sour production processing system used at the Jay Field Wells. Rec. 7770-7773, 7813 (1975). 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). 17-089-00532: Well Direction: Operator: HUMBLE OIL AND REFINING CO. United States v. American Trucking Association, 310 U.S. 534, 543 (1940). Listed below are the cases that are cited in this Featured Case. Prior to 1975, section 613 allowed percentage depletion for oil and gas wells. A number of cities in Louisiana are also home to Jewish communities, These geospatial data and related maps or graphics are not legal documents and are not intended to be used as such. WebLa. the more important, as well as the publications of the La Land And when we're finished we don't own the computer or have the people on our permanent payroll. L. 69-20, sec. Subparagraph (C), which states the oil and gas well exception from depletion, states simply "oil and gas wells." The well effluent is initially treated in a separation system which uses gravity to separate the effluent into brine water, sour crude oil, and a sour gas stream containing natural gas, hydrogen sulfide, and carbon dioxide. Percentage depletion for natural resources has been a part of the Internal Revenue Code since the Revenue Act of 1926. tax rate is 1 percent: a .97 percent Louisiana sales tax Rec. Under respondent's reading of section 613A(e)(2), section 613A provides exemptions for hydrocarbons extracted by independent producers and royalty owners but eliminates percentage depletion of nonhydrocarbon "natural gases" extracted from oil and gas wells for all taxpayers. No damages have yet been proven, and indeed, the partial summary judgment would be proper even if none are ever established. The company was incorporated in 2010 and is based in New Orleans, Louisiana. The brine water is reinjected into the well. WebThe Louisiana Land and Exploration Company Overview. Click the citation to see the full text of the cited case. The Copper Range Company owned a copper mine in White Pines, Michigan; refined and fabricated copper bars, strips, plates, and sheets; owned 185 thousand acres of mixed hardwood timber; enjoyed extensive mineral rights in upper Michigan; and owned a one-half interest in a Nevada gold mine. The Drillings makes no warranty, expressed or implied, including the warranties of merchantability and fitness for a particular purpose, nor assumes any legal liability or responsibility for the accuracy, reliability, completeness or utility of these geospatial data, or for the improper or incorrect use of these geospatial data. 30:29 (referred to as Act 312), this oilfield remediation case involved the Vermilion Parish School Board (VPSB), individually and on As LL&E expanded its exploration efforts (by 1974 it was exploring in southern Louisiana, the Rocky Mountain area, a geological stratum from northern Louisiana to Florida, and off the coasts of Louisiana and Texas) it began to act as operator in an increasing number of its working interest efforts. LA 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. In 1965 LL&E had only 145 employees. This appeal stems from the granting of a motion for partial summary judgment in favor of the Louisiana Land and Exploration Company (LL & E). WebLouisiana Land & Exploration Co. PO Box 60350 New Orleans , Louisiana 70160 Louisiana Land & Exploration Co. is a corporation lessee based in New Orleans, Louisiana for 11 oil Browse lease owners by state in the United States of America, Browse owners by category (corporation, agency, private), Browse owners by interest relationship (partner, holder, agent, etc.). fertile delta lands; further inland are plains and low rolling This definition encompasses both hydrocarbon and nonhydrocarbon gases. Louisiana Land And Exploration Company 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. 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." Hydrocarbons are organic compounds containing only hydrogen and carbon and are most commonly used as fuels. Louisiana Land and Exploration Co The practice in the oil and gas industry when section 613A was enacted was to sell hydrocarbon gas for use as fuel under long-term fixed price contracts. THE LOUISIANA LAND AND EXPLORATION COMPANY AND SUBSIDIARIES, PETITIONERS Products; Resources; My Account; Talk to a D&B Advisor 1-800-280-0780. Business Directory. In 1984, the Supreme Court considered the effect of section 613A on percentage depletion of oil and gas income and concluded that sections 611-613A permit an allowance for percentage depletion on lease bonuses at some point during the productive life of the lease, regardless of when actual production of oil and gas occurred. Founded as the Border Research company in 1926 and renamed Louisiana Land and Exploration a year later, LL&E, for its first twenty years, essentially collected royalties from fossil fuels extracted from nearly 600,000 acres it controlled in southern Louisiana. 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. Sulphur is mentioned once in the congressional debates as part of a list of 108 mineral extractive industries for which percentage depletion was retained. In no case shall the allowance for depletion under section 611 be less than it would be if computed without reference to this section. 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. 121 Cong. Sulphur is depletable pursuant to section 613(b)(1) and not section 613(b)(7). The carbon dioxide is vented to the atmosphere. Much of the land was eventually taken over by a group of midwesterners led by Henry Timken, who owned an Ohio ball bearing company. The company became a public company . pelts, especially muskrat; second only to Texas in oil and natural Bayou, a National Wild and Scenic River in northern There is no question that there are no particular gas reserves governed by warranty contracts entered into by Texaco. Petitioners, the Louisiana Land & Exploration Co. (LL&E) and Subsidiaries, are an affiliated group of corporations whose common parent is LL&E. See United States v. 3,788.16 Acres of Land, 439 F.2d 291, 294 (8th Cir. A literal reading, however, aims the statutory restrictions on percentage depletion at any mineral produced along with oil or gas when the legislative record of section 613A's passage is wholly devoid of mentioning any such important targets. (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. Rec. WebThe Louisiana Land and Exploration Company Address: 909 Poydras Street P.O. Katrina (notably New Orleans) in 2005. Preserve, headquartered in New Orleans, with units in The acid gas next is separated from the amine solution and passed into a multistage Claus sulphur recovery system, where hydrogen sulfide is converted into molten elemental sulphur by controlled combustion with air. Department of Natural Resources | State of Louisiana (Cf. 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. 1763, then to the USA in 1783; W region acquired by the USA in the percent. 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. area, Baton Rouge metropolitan LOUISIANA LAND AND EXPLORATION COMPANY 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. Pub. Respondent has stipulated that if we find petitioners are entitled to percentage depletion deductions, they correctly computed the amount of the depletion deductions on their Federal income tax returns. 82-17, 1982-1 C.B. Commissioner v. Engle, 464 U.S. 206, 218 (1984). Department of Natural Resources | State of Louisiana Click the citation to see the full text of the cited case. Lease No. Respondent interprets section 613A(e) as follows: Section 613A(e)(2) provides a definition; it is not an allowance section. Respondent further argues that Congress would not have used the term "oil and gas wells" as opposed to simply "oil and gas" if it had not intended to limit percentage depletion for all products of oil and gas wells. Moreover, because of varied corporate exploration philosophies and changes in drilling and seismic forecasting techniques, LL&E was constantly leasing and re-leasing the same acreage to different operators. 204(c)(2), 44 Stat. Under the agreement, LL&E retained a 25 percent working interest and a 20 percent royalty in Texaco's share of production. Respondent thus argues that because the sulphur in issue is a product of oil and gas wells, it loses its section 613 depletion allowance. The Island is also the original home of Spots, the beloved blue-eyed white alligator who lived at the Audubon Aquarium of the Americas for 24 years. divided into 64 parishes (the only state to use this term for its Between 1978 and 1980 LL&E's sales jumped from $549.4 million to $1.075 billion while earnings increased from $94.8 million to $180.2 million, despite $64 million in 1980 windfall profits taxes. The remainder of central and north Louisiana was home Depletion generally is calculated based on the cost of the property. 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. growth rate 2000?2005, Cane River National Heritage Area near Excel Known Addresses for The Louisiana Land & Exploration Co 909 Poydras St New Orleans, LA 70112 Advertisements Source Texas Secretary of State Data last refreshed on Thursday, March 2, 2023 What next? Louisiana Historical Society and several works 16. The Louisiana Land and Exploration Company (LL&E) is one of the largest independent oil and gas exploration companies in the United States. The percentage depletion rate for sulphur is 22 percent. denied 382 U.S. 892 (1965). As the largest owner of environmentally sensitive wetlands in the continental United States, LL&E had long been careful to protect its investment. Respondent entered into the stipulation with full knowledge of the relevant facts and in doing so agreed to waive any argument concerning the amount of any depletion deduction allowable. Discover petroleum exploration activity in your area and find new regions of opportunity. Copyright 2023 Web Solutions LLC. Caspary's charges had some legitimacy. And they paid us a $4 million bonus on the lease!". notably Shreveport, Baton Rouge, and New Orleans.Isaacs, 312, 318 (1976)), the evidence in this case does not justify our ignoring the parties' stipulation. 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. The Tax Reduction Act of 1975, Pub. Wisner was struck by swampy southern Louisiana's resemblance to the low-lying Netherlands, where industrious farmers had reclaimed millions of acres for farming. 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. Louisiana v. Louisiana Land & Exploration Co. et al. The Copper Range acquisition did not please the financial community. Rul. Petitioners, the Louisiana Land & Exploration Co. (LL&E) and Subsidiaries, are an affiliated group of corporations whose common parent is LL&E. After reviewing the law and the facts, we find that the district court was correct in its determination. L. 94-12, sec. 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. Information hosted on The Drillings is based on publicly available data through the Bureau of Land Management. The standard history of the state, though only through The other major source of sulphur for commercial use is the Frasch sulphur mining industry. At all relevant times, petitioner sold the sulphur it produced to Freeport Minerals Co. The typical well stream in the Jay Field contains approximately 8.5 percent hydrogen sulfide and 2.2 percent carbon dioxide. WebSearch the D&B Business Directory and find the GAYLE LAND EXPLORATION CO company profile in MONROE, LA. v. See Rev. Wolf Exploration Company shall, as to such leases, be entitled to the same overriding royalty, provided for hereinabove in paragraphs 1.1.1 through 1.1.5. French explorers, among whom the following at least should 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. The company had few employees and operators shouldered the major expenses of exploration and development. 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. 121 Cong. The term "subject to," in its ordinary sense, means "subordinate to" or "governed or affected by". Click on the case name to see the full text of the citing case. Listed below are those cases in which this Featured Case is cited. Rec. To do this, he committed major amounts of capital to new exploration initiatives. That year also marked Steward's conclusion of a property exchange that substantially increased LL&E's interest in the Madden Field in Wyoming. Land Rule 91(e), Tax Court Rules of Practice and Procedure. (c) EXEMPTION FOR INDEPENDENT PRODUCERS AND ROYALTY OWNERS., (1) IN GENERAL.Except as provided in subsection (d), the allowance for depletion under section 611 shall be computed in accordance with section 613 with respect to. 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. Section 613A(e)(1) defines "crude oil" as including "a natural gas liquid recovered from a gas well in lease separators or field facilities." The LL & E leases require Texaco to pay royalties based upon a percentage of the value of the gas produced. 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.
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