There is no indication that Congress intended to limit percentage depletion for any products of oil and gas wells other than hydrocarbon fuels.12. In 1989 the Department of Interior recognized this effort and awarded LL&E its Conservation Award for Respecting the Environment. Respondent's stipulation also suggests that the amount of the depletion deduction is susceptible of calculation. Specifically, subparagraph (C) does not state "minerals from oil and gas wells.". We find that the use of the term "subject to" in subsection (b), (and again in Section 109) necessarily qualifies the more general language "sold under". The acid gases (hydrogen sulfide and carbon dioxide) are separated from the natural gas through an absorption process. 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. Principal Subsidiaries: CL&E Corp.; Inexco Oil Co.; Wilson Bros. Drilling Co.; Molokai California Ltd.; LLOXY Holdings, Inc.; White Pine Leasing, Inc.; LL&E Properties, Inc.; Westport Utilities Systems Co., Inc.; LL&E (Netherlands) Inc.; CLAM Petroleum Co.; MaraLou Netherlands Partnership (50%). 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. Sec. (1) CRUDE OIL.The term "crude oil" includes a natural gas liquid recovered from a gas well in lease separators or field facilities. Although it did not expressly hold that "oil and gas wells" means "oil and gas," the Court referred repeatedly to oil and gas production, not the production of minerals from oil and gas wells. It appears that the absence of the phrase "minerals from" from paragraph (C) was not an oversight. 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. v. Louisiana Land and Exploration Co And when we're finished we don't own the computer or have the people on our permanent payroll. 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. Timken hoped to lease the land to fur trappers. This released acreage amounted to approximately 557,000 acres. The following June a wholly owned subsidiary of LL&E, the Sun Fire Coal Company, began to develop an underground mine near Hazard, Kentucky. If independent producers cannot claim percentage depletion for the sulphur they may recover from hydrogen sulfide before selling the hydrocarbon fuels extracted from an oil and gas well, there is less economic incentive to explore for and exploit new wells, particularly sour gas wells. 16. 1971). Louisiana Land and Exploration Co In 1930 Texaco also agreed to pay LL&E's $1.8 million funded indebtedness. Strong collaboration leads to effective conservation LLEC began attempting to mark that boundary, first with a ditch and later by removing the Liners stakes at the edges of their claimed land. 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." Prior to 1975, section 613 allowed percentage depletion for oil and gas wells. Louisiana Land & Exploration Co LLC/The - Company Congress did not intend to take any tax benefit away from independent producers in approving section 613A. 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. The gas referred to in these sections is hydrocarbon gas. The user is responsible to verify the limitations of the geospatial data and to use the data accordingly. On November 7, 1938, LL&E and Texaco amended their contract. During the years in issue, petitioners were engaged primarily in exploration for and development, production, refining, and sale of crude oil and natural gas and exploration for, production and mining of other minerals such as sulphur, gold, silver, copper, and coal in the United States and several foreign countries. Therefore, we hold that the district court correctly concluded that Section 109 of the NGPA regulates the ceiling price for the gas in question. WebThe Louisiana Land & Exploration Co is listed as an officer of another company. 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. The Supreme Court has interpreted "oil and gas wells" to mean the oil and gas produced from such wells. France by La Salle, 1682; most of the E region ceded to Spain in Petitioners contend that section 613A applies only to hydrocarbon fuels and that sulphur, which is not a hydrocarbon, is depletable under section 613(b)(1). Not satisfied? 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. The Louisiana Land and Exploration Company LLC operates as a subsidiary of ConocoPhillips. 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. 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. 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. 17-023-20688: Well Direction: Operator: MCMORAN EXPLORATION COMPANY: Lease No. 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. LL&E continued to do quite well in the late 1960s and early 1970s, reporting income of $51.9 million on 1970 sales of $114 million. These geospatial data and related maps or graphics are not legal documents and are not intended to be used as such. The extent of the damages, if any, suffered by LL & E must be determined in a further proceeding. WebLOUISIANA LAND AND EXPLORATION, COMPANY, THE was registered on Nov 12 1974 as a foreign profit corporation type with the address 225 BARONNE ST., NEW ORLEANS, LA, increasing; world famous for the jazz music which grew up in and Hydrogen sulfide is never used as a fuel and is not sold under long-term fixed price contracts. plants in several cities; leads the nation in salt and sulphur (It is the biggest producer of crawfish in the world), cotton, soybeans, on the history of New Orleans (q.v. Search for owners by first name, last name, company, location, etc. It is true that the statutory language on its face is incongruous. tourism. 613A(c)(4). In 1971 revenues from working interests exceeded those from royalty interests for the first time. fertile delta lands; further inland are plains and low rolling WebLL E is engaged primarily in exploration for and development of petroleum, natural gas and minerals. A second issue is whether the partial summary judgement was procedurally appropriate in this situation. 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. WebDetails for well Sweet Lake Land And Oil Co 001 | API # 17-023-20688 | operated by McMoran Exploration Company in Cameron Parish, LA. originally applied to the entire Mississippi R basin, claimed for La Land Louisiana Rec. 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. He notes that the "oil and gas well" language has been in the Code since percentage depletion was enacted in 1926 and argues that Congress would have changed it if it intended only to limit oil and gas depletion. Since then, the area around Paradis has attracted generations of hunting and outdoor enthusiasts alike. Instead, we find that the value of the gas within the terms of the leases is a disputed factual issue to be determined at the hearing on damages. (A salt dome is a raised central area of salt or rock, around which beds of sedimentary rock dip in all directions. Forbes called Copper Range "a company so bad that some analysts wondered whether it was acquired to make Louisiana Land unattractive as a takeover candidate." At all relevant times, petitioner sold the sulphur it produced to Freeport Minerals Co. Furnel, Inc. has been successfully implementing this policy through honesty, integrity, and continuous improvement. Section 613A bars percentage depletion for oil and gas wells with two exceptions. R.S. Louisiana Land and Exploration Co Congress thus retained percentage depletion for small, independent producers to encourage domestic production. 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.". 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. In determining this price, Texaco claims that Section 105 of the NGPA, entitled "Ceiling price for sales under existing intrastate contracts," is applicable. The Drillings is a resource for locating where oil and gas leases are and have been. Terms of Use, Ultra Petroleum Corporation Business Information, Profile, and History, The Columbia Gas System, Inc. Business Information, Profile, and History, *Estimated as of July 1, 2005U.S. Louisiana Section 613(b)(1)(A) provides that sulphur is depletable at a 22-percent rate. Visit DandB.com to locate more business profiles. In the early 1980s, industry economics changed LL&E's fortunes. 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: In 1988 crude prices fell by more than $3 a barrel and newly named CEO and chairman H. Leyton Steward was forced to take an $81.8 million restructuring charge and a $33.3 million loss. History Timeline 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. The venture's finances faltered and in time there were foreclosures. and 22 percent shall be deemed to be specified in subsection (b) of section 613 for purposes of subsection (a) of that section. 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. As a result, LL&E enjoyed low expenses and high profits. 7295-7296 (1975). The conversion ratio represents a fuel equivalence; 6,000 cubic feet of natural gas generates the same amount of heat as one barrel of oil. Petitioners rightly assumed that the issue was settled and cannot now justly be required to prove the amount of the depletion deduction to which we have found they are entitled. Responding to these problems, Phillips curtailed and then suspended copper mining, reduced staff, eliminated high-risk exploration ventures, cut back on capital expenditures, and in November reduced the cash dividend. Continuing the marriages among energy companies, Burlington Resources Inc. agreed to acquire Louisiana Land & Exploration Co. for about $2.44 billion in stock. The companies' officials say the transaction will create one of the largest independent oil and natural-gas concerns in the country in terms of reserves and production. Sulphur is mentioned once in the congressional debates as part of a list of 108 mineral extractive industries for which percentage depletion was retained. chief cities, New Orleans and Shreveport; bounded S by the Gulf of See Black's Law Dictionary 1278 (5th Ed.1979). It also sought to expand riskier but potentially more lucrative foreign exploration. See 121 Cong. Louisiana. Wednesday, July 9, 1997. For example, we don't hesitate to use consultants. The Louisiana Land and Exploration Company 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). Timken agreed and in 1926 exchanged his acres for shares in the Border Research Corporation. Accordingly, we affirm the partial summary judgment granted by the district court and remand the case for a determination of damages. Its industrial outputs include chemical products, Docket Nos. 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. With no more than 4.4 years of proven reserves on hand in 1980, Phillips needed to find new reserves at a reasonable cost if he was to insure the company's continued profitability. 7295. 1.613-2(b)(4), Income Tax Regs.10 Section 613(b)(1)(A), which provides for percentage depletion at a rate of 22 percent for sulphur, has no limitation based on the source of the sulphur.
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