1885). 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. 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. 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. Natural gas, in contrast, is a broad concept encompassing many types of gases and is, therefore, more difficult to define. Until 1982, the Frasch mining industry was the dominant source of sulphur in the world. Gayle Land Exploration Co specializes in Oil And Gas Exploration Services. (It is the biggest producer of crawfish in the world), cotton, soybeans, 4606 (1975). While entities may have multiple locations, this is based on the address registered for the lease. 312, 318 (1976)), the evidence in this case does not justify our ignoring the parties' stipulation. In addition, in December 1976 LL&E acquired the Warrior River Coal Company, owners of a small surface mine in Tuscaloosa, Alabama. The Louisiana Land and Exploration Company LLC has 581 employees, and the revenue per employee ratio is $481,927. Information hosted on The Drillings is based on publicly available data through the Bureau of Land Management. area, List of school districts in Louisiana v. Louisiana Land & Exploration Co. et al. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT, United States Tax Court.https://leagle.com/images/logo.png. 613A(e)(2). 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.. by Fr. The carbon dioxide is vented to the atmosphere. Sec. 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. 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. WebLL E is engaged primarily in exploration for and development of petroleum, natural gas and minerals. 612. 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: Louisiana Land and Exploration Co See: In the Matter of Amoco Production Co., 78 IBLA 93 (1983) (A decision by the Interior Board of Land Appeals with appeal currently pending in the federal district court, western district of La., docket # CV84-0916); Letter opinion by Charles A. Moore, general counsel of Federal Energy Regulatory Commission, addressed to Tipperary Corp., 1982 Federal Program Advisory Service, p. 3, para. 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. The amine solution absorbs the hydrogen sulfide and carbon dioxide and natural gas flow out of the top of the contactor. LL&E is a Maryland corporation having its principal office at New Orleans, Louisiana. 4, 972.) WebHistorical stocks and bonds, Autographs, Americana, Ephemera, Numismatics and all forms of paper collectibles specializing in Uncancelled bonds The Copper Range acquisition did not please the financial community. But while business was very good in the late 1970s there were doubts about LL&E's future. Sec. Small producers must also separate hydrogen sulfide from natural gas before the natural gas may be transported through pipelines and used as fuel. See, e.g. Respondent thus argues that because the sulphur in issue is a product of oil and gas wells, it loses its section 613 depletion allowance. Commissioner v. Engle, 464 U.S. 206, 218 (1984). 979 (1961), affd. WebThe Louisiana Land & Exploration Co is listed as an officer of another company. Whether it is filing a lease or researching one, the administering BLM office is going to be the definitive source. Moreover, the legislative record tends to show that Congress believed it was not restricting percentage depletion under section 613 for any minerals except oil and gas. Its industrial outputs include chemical products, Rightor and John Kendall Smith. The other major source of sulphur for commercial use is the Frasch sulphur mining industry. 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. Burlington Resources Buys Louisiana Land - WSJ Natural hazards may or may not be depicted on the data and maps, and land users should exercise due caution. The goal of the legislation was to eliminate what was perceived to be an unneeded tax incentive only for the major integrated oil companies. Congress' goal of encouraging domestic production would in that event be thwarted. 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. the more important, as well as the publications of the At all relevant times, petitioner sold the sulphur it produced to Freeport Minerals Co. Headquartered in New Orleans, it A number of members criticized the provision for unfairly singling out the oil and gas industry. 82-17, 1982-1 C.B. Much of the land was eventually taken over by a group of midwesterners led by Henry Timken, who owned an Ohio ball bearing company. Rec. Rec. 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. 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%). For this reason, Congress chose to define natural gas by reference to what gases are depletable pursuant to section 611. 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. The Louisiana Land and Exploration Company LLC is a relatively young Rec. See 121 Cong. Burlington Resources - Wikipedia Specifically, subparagraph (C) does not state "minerals from oil and gas wells.". 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." 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. LL&E is a Maryland corporation having its principal office at New Orleans, Louisiana. In 1980, LL E earned profits of 180.2 million dollars or $4.74 per share. Under the agreement, LL&E retained a 25 percent working interest and a 20 percent royalty in Texaco's share of production. Section 613A(b), providing percentage depletion for "regulated natural gas" and "natural gas sold under a fixed contract" also makes sense only if section 613A applies solely to hydrocarbon fuels. 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. Forbes criticized the offer, charging that the company had waited too long to get into explorations and would be left with expensive deeper water wells. An "oil and gas well" is not itself a mineral, and to provide a depletion rate for "all other minerals except * * * oil and gas wells" would seem to require an implied reading that "minerals from" must have been intended. The sulphur is then condensed and stored until sold. Natural gas is measured and sold by standard cubic feet. LAND EXPLORATION CO 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. 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." 613(A)(c)(4). 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). The Louisiana Land and Exploration Company (LL&E) is one of the largest independent oil and gas exploration companies in the United States. 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. LL&E enjoyed a good exploration year in 1990. The Louisiana Land and Exploration Company The Claus system chemically converts more than 96 percent of the hydrogen sulfide into elemental sulphur. Land We conclude that in drafting section 613A, Congress intended to limit percentage depletion only for income from hydrocarbon fuels. Rec. Section 613(b)(1)(A) provides that sulphur is depletable at a 22-percent rate. The Louisiana Land and Exploration Company LLC operates as a subsidiary of ConocoPhillips. Katrina (notably New Orleans) in 2005. The brine water is reinjected into the well. "The normal royalty was one-eighth (12 percent). Hydrogen sulfide is never used as a fuel and is not sold under long-term fixed price contracts. Construction began on a new catalytic reformer that would provide more highly valued refined products. 4611 (1975) (remarks of Representative Green); 121 Cong. 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. 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 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. 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. chief cities, New Orleans and Shreveport; bounded S by the Gulf of 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. See Rev. The Drillings accepts no liability for the content of this data, or for the consequences of any actions taken on the basis of the information provided. Oil and Gas Producers | Houma, LA - Manta.com In 1971 revenues from working interests exceeded those from royalty interests for the first time. Canada by the British in the 18th-c); areas devastated by Hurricane It is true that the statutory language on its face is incongruous. 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. "We pay 25 percent of the cost," Ford Graham enthusiastically told Dun's Review "and get 40 percent of the income. 121 Cong. WebIn 1988, the company was formed to own the resource assets of Burlington Northern Railroad. LOUISIANA LAND AND EXPLORATION, COMPANY, THE WebThe La Land & Exploration Co M 001: API No. descent) and Cajuns (descendants of French Acadians driven from Sulphur has been recovered from hydrogen sulfide and sold as a by product of the processing facilities since the facilities were placed in operation. Deteriorating economic conditions, windfall profits taxes, high dry hole costs, narrower profit margins, and declining demand all pressured earnings. The Louisiana Land and Exploration Company LLC 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. Nevertheless, respondent himself has articulated his belief that the "natural gas" referred to in section 613A is "hydrocarbon gas." See 121 Cong. Products; Resources; My Account; Talk to a D&B Advisor 1-800-280-0780. Business Directory. There is no indication that Congress intended to limit percentage depletion for any products of oil and gas wells other than hydrocarbon fuels.12. ; Shamrock Oil & Gas Corp. v. Commissioner, 35 T.C. In 1930 Texaco also agreed to pay LL&E's $1.8 million funded indebtedness. 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. These moves strengthened LL&E's overall position, but plunging oil prices and the Copper Range charge took their toll. 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. On November 7, 1938, LL&E and Texaco amended their contract. No damages have yet been proven, and indeed, the partial summary judgment would be proper even if none are ever established. 30292-85, 37799-85, 47753-86. Lease No. We agree with the district court that Section 109 applies. 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. (162m/532ft); vast coastal areas of marsh, lagoon, and Webster's Third New International Dictionary 1507 (1981) defines natural gas in terms of its value as a fuel: any of various combustible gas mixtures that when in the dry state contain largely methane and in the wet state in association with petroleum contain also higher hydrocarbons and that are used chiefly as fuels * * *. Hydrogen sulfide is a poisonous, highly corrosive gas which cannot be vented into the atmosphere in large quantities without serious deleterious effects. In determining this price, Texaco claims that Section 105 of the NGPA, entitled "Ceiling price for sales under existing intrastate contracts," is applicable. Supported by the Hunt family, which boasted a 12.3 percent block of LL&E stock, Caspary attacked LL&E's record since the mid-1970s, pointing to declining earnings, reduced dividends, falling reserves, and the copper acquisition. This professionalism is the result of corporate leadership, teamwork, open communications, customer/supplier partnership, and state-of-the-art manufacturing. 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. Louisiana Historical Society and several works LA Decisions will be entered under Rule 155. LL&E reported 1986 losses of $20.6 million. The separated natural gas is processed further in another contactor which removes water vapor from the gas stream. 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. The company's troubles climaxed the following year as investor Delo Caspary mounted a proxy fight to remove Phillips and the rest of management. In 1984 Phillips was replaced by E. L. Williamson, who worked to sustain profit margins and increase reserves. Listed below are those cases in which this Featured Case is cited. Of the company's 225 million barrels of oil equivalent reserves, nearly 60 percent are garnered from domestic sources. Department of Natural Resources | State of Louisiana 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 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. Oil and Gas lease entities located near Louisiana Land & Exploration Co.. 613A(c)(4). 121 Cong. Pub. 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 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. It continued, however, with its policy of contracting other firms to perform seismic surveys and other exploration and development tasks. L. 69-20, sec. Louisiana Land & Exploration Co. Oil and Gas Leases - The The oil stabilization system also reduces the vapor pressure of the crude oil to a low enough level that it can be stored and transported in atmospheric tanks and tank trucks. 7807. 613A(c)(1). cattle, sugarcane, poultry and eggs, dairy products, and E.g., 121 Cong. There is no question that there are no particular gas reserves governed by warranty contracts entered into by Texaco. notably Shreveport, Baton Rouge, and New Orleans.Isaacs, gas production (mainly offshore); oil refineries and petrochemical Section 613(b) in general provides the list of minerals that are eligible for percentage depletion and specifies the percentage depletion rates. 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. Respondent's position in this case thus seems to conflict with his reading of section 613A as expressed in one of his published rulings. 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. 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. The, first commercial plant in the United States to use the modified Claus process was placed in operation in 1944. Petitioners, the Louisiana Land & Exploration Co. (LL&E) and Subsidiaries, are an affiliated group of corporations whose common parent is LL&E. (b) EXEMPTION FOR CERTAIN DOMESTIC GAS WELLS.. Louisiana The Louisiana Land and Exploration Company LLC revenue is $280.0M annually. 21 Engel Injection Molding Machines (28 to 300 Ton Capacity), 9 new Rotary Engel Presses (85 Ton Capacity), Rotary and Horizontal Molding, Precision Insert Molding, Full Part Automation, Electric Testing, Hipot Testing, Welding. and paper industry; highly productive in agriculture; soybeans, After winning the proxy fight in 1983, Phillips sold LL&E's coal properties and bought back 71 million shares for $212.8 million. Texaco pays 75 percent and gets 60 percent. (1975). 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. Park, Poverty Point National Monument at The primary products from the Jay Field wells and processing facilities have been oil and natural gas. LL&E's company earnings, $54.9 million in 1990, fell to $20.9 million in 1991 as falling oil and natural gas prices combined to make the year a difficult one. 121 Cong. 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. To make up for this, LL&E participated in additional working interest wells and in 1970 discovered a major reserve estimated at 720 million barrels of oil in the Jay Field in Santa Rosa, Florida.
