We receive lots of emails from people who find their name or a relatives name on our site and want to know if this means they have some right to the land listed under that name. The diagram on the facing page summarizes the sour production processing system used at the Jay Field Wells. It also sought to expand riskier but potentially more lucrative foreign exploration. 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 normal royalty was one-eighth (12 percent). LL&E reported 1986 losses of $20.6 million. WebThe Louisiana Land & Exploration Co is listed as an officer of another company. 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. Hydrogen sulfide, alone, or in combination with natural gas is also unsuitable for use as a fuel because the combustion of hydrogen sulfide produces sulphur dioxide, a toxic substance subject to control under Federal pollution standards. Whether it is filing a lease or researching one, the administering BLM office is going to be the definitive source. 3rd Cir.1984), wherein the court approved the procedure of granting a partial summary judgment on the issue of an insurer's obligation to defend, reserving to the insured the right to establish damages in a further proceeding. 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. The data are dynamic and may change over time. In 1965 LL&E had only 145 employees. According to LL & E, the ceiling price for the gas is fixed by Section 109 of the NGPA, which provides, in pertinent part: In granting LL & E's motion, the district court found that although the gas was being "sold under" contracts existing when the NGPA was adopted, as is required by subsection (a) of Section 105, this fact was not enough to submit the gas to the Section 105 price limitation. The, first commercial plant in the United States to use the modified Claus process was placed in operation in 1944. Sulphur is depletable pursuant to section 613(b)(1) and not section 613(b)(7). 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. 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. Section 613A(e) defines crude oil and natural gas for purposes of section 613A. 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. A number of travel relations by 17th and 18th century A number of cities in Louisiana are also home to Jewish communities, 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. The standard history of the state, though only through Louis Hennepin, Lahontan, Louis Narcisse Baudry des Lozires, Jean-Baptiste Bnard de La Harpe, and Laval. 121 Cong. an economic revolution in the early 1900s when large deposits of 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. 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." 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. Docket Nos. 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. 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. As the largest owner of environmentally sensitive wetlands in the continental United States, LL&E had long been careful to protect its investment. We reject LL & E's contention that it has proven by affidavit that the gas could at all times have been sold at the Section 109 ceiling price, thereby establishing its value for royalty purposes under the leases. Sulphur is mentioned once in the congressional debates as part of a list of 108 mineral extractive industries for which percentage depletion was retained. WebHistorical stocks and bonds, Autographs, Americana, Ephemera, Numismatics and all forms of paper collectibles specializing in Uncancelled bonds (A salt dome is a raised central area of salt or rock, around which beds of sedimentary rock dip in all directions. In the early 1970s, however, its Louisiana reserves began their natural decline. Natural gas, in contrast, is a broad concept encompassing many types of gases and is, therefore, more difficult to define. 7801 (remarks of Senator Bartlett) (criticizing amendment for altering percentage depletion only for oil and gas industry); 121 Cong. List of official symbols of Following respondent's reasoning, "natural gas" for purposes of section 613A means any product extracted from an oil and gas well in a gaseous state. In addition to the Texaco royalties, which were still significant (of 25 Lake Barre Field wells Texaco completed in 1964, 21 produced oil, two produced gas and only two were dry), LL&E had signed royalty agreements with Union Oil of California, Signal Oil, Amarada Hess, and Humble Oil and Refining. Rec. All Rights Reserved Wednesday, July 9, 1997. coal products, food 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. 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. 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. The percentage depletion rate for sulphur is 22 percent. percent. We aim to provide a wide range of injection molding services and products ranging from complete molding project management customized to your needs. 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. Deteriorating economic conditions, windfall profits taxes, high dry hole costs, narrower profit margins, and declining demand all pressured earnings. The same year he paid $486 million for Inexco Oil Co., an oil company with reserves that included 9.9 million barrels of liquids and 392.7 million cubic feet of domestic natural gas reserves. Accordingly, we affirm the partial summary judgment granted by the district court and remand the case for a determination of damages. Wisner's plans, however, were thwarted by southern Louisiana's severe weather. 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. 1971). Some thought the major integrated oil companies were reaping excessive oil and gas profits at the public's expense, while reinvesting little of their concomitant tax depletion subsidies in domestic energy production. 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. Foreign reserves are located in the U.K. and Dutch sectors of the North Sea, Canada, and Columbia. 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. Sec. 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, In 1975 the Kalua Koi Corporation, LL&E's 50-percent-owned Hawaiian operation, began construction on the first phase of a 298-unit hotel condominium complex. Gayle Land Exploration Co specializes in Oil And Gas Exploration Services. This appeal stems from the granting of a motion for partial summary judgment in favor of the Louisiana Land and Exploration Company (LL & E). 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). Court of Appeal of Louisiana, Fourth Circuit. 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. State in S USA, Epps. 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. We disagree. The Drillings is a resource for locating where oil and gas leases are and have been. Sec. 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. counties); the Pelican State; name (after Louis XIV of France) As a result, LL&E enjoyed low expenses and high profits. France by La Salle, 1682; most of the E region ceded to Spain in 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. Respondent articulated the applicable principles as follows: Although in the physical sense [carbon dioxide] is a gas, it is not the gas referred to in the term "oil and gas wells" in sections 263(c), 611, 613, and 613A of the Code. and 22 percent shall be deemed to be specified in subsection (b) of section 613 for purposes of subsection (a) of that section. To this end, in 1991 LL&E acquired two interests in Australia and applied for a concession in Papua New Guinea. Tenneco Exploration, Ltd. v. Federal Energy Regulatory Commission, wherein the federal Fifth Circuit read NGPA Section 104 in para materia with Section 109 to determine the applicability of Section 109 to gas that had not been committed or dedicated to interstate commerce within the meaning of the NGPA.). Search for owners by first name, last name, company, location, etc. 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. 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. At that time, the lodge housed 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. 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. It was solely Texaco's choice to meet its obligations to these customers with LL & E's gas. Click on the case name to see the full text of the citing case. 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. The following June a wholly owned subsidiary of LL&E, the Sun Fire Coal Company, began to develop an underground mine near Hazard, Kentucky. The sulphur is then condensed and stored until sold. 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. Leagle.com reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions. Costs were low at $3.23 per barrel and by year's end, LL&E's reserve life index stood at 8.4 years, nearly double that of 1980. Although this Court will disregard a stipulation that is plainly contrary to the facts (Jasionowski v. Commissioner, 66 T.C. Petitioners extracted four categories of products from the Jay Field wells: liquid hydrocarbons, gaseous hydrocarbons, nonhydrocarbon gases, and nonhydrocarbon liquids.2. 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. LL&E is a Maryland corporation having its principal office at New Orleans, Louisiana. See Black's Law Dictionary 1278 (5th Ed.1979). The early 1960s proved very successful for LL&E. v. Milling, Benson, Woodward, Hillyer, Pierson & Miller, Charles D. Marshall, Jr.. 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. Sec. At Furnel, Inc. we understand that your projects deserve significant time and dedication to meet our highest standard of quality and commitment. WebThe Louisiana Land and Exploration Company Overview. 613(b)(1)(A). 121 Cong. 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. 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. to a substantial portion of the, New Orleans metropolitan The company's troubles climaxed the following year as investor Delo Caspary mounted a proxy fight to remove Phillips and the rest of management. (various editions, culminating in 1866, 4 vols., with a Rec. At that time, the lodge housed the Louisiana Land and Exploration Companys crew while they constructed a levee around the 3,000 acre property. 1812; seceded from the Union, 1861; re-admitted, 1868; experienced LL&E is a Maryland corporation having its principal office at New Orleans, Louisiana. denied 382 U.S. 892 (1965). WebThe Louisiana Land and Exploration Company LLC * 5 Principals See who the company's key decision makers are 3 Contacts Reach the right people with access to detailed contact Land & Expl. The minerals in the water are not developed for commercial use, and the brine water is reinjected into the well reservoir to maintain pressure. United States v. American Trucking Association, 310 U.S. 534, 543 (1940). Therefore, we hold that the district court correctly concluded that Section 109 of the NGPA regulates the ceiling price for the gas in question. After reviewing the law and the facts, we find that the district court was correct in its determination. WebSearch the D&B Business Directory and find the GAYLE LAND EXPLORATION CO company profile in MONROE, LA. Rec. There is no question that there are no particular gas reserves governed by warranty contracts entered into by Texaco. Shell Oil Co., v. Williams, 428 So.2d 798 (La.1983). Section 613A bars percentage depletion for oil and gas wells with two exceptions. 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. "It was a very unusual contract for 1928," LL&E president Ford Graham told Dun's Review in 1965. 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." plants in several cities; leads the nation in salt and sulphur 613A(c)(3). When we have a project we'll go to Houston, rent a computer and run it through. See, e.g. Login | Register; Home; Operators; Leases; Wells; Permits; Pricing; Search; Map; Sweet Lake Land And Oil Co 001: API No. 7295-7296 (1975). Sec. French explorers, among whom the following at least should Preserve, headquartered in New Orleans, with units in 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. Current estimates show that the unit has a sales volume of $1500000 and staff of approximately 17 people. After winning the proxy fight in 1983, Phillips sold LL&E's coal properties and bought back 71 million shares for $212.8 million. 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. Click the citation to see the full text of the cited case. The Supreme Court has interpreted "oil and gas wells" to mean the oil and gas produced from such wells. The natural gas is then transported through natural gas pipelines for use by petitioner or sale to Florida Gas Transmission Co. pursuant to a long-term gas purchase contract dated November 15, 1971. originally applied to the entire Mississippi R basin, claimed for WebPlaquemines Parish, LA Tenneco Inc. La Land & Expl Co B Lease API # 17-075-01679 Well Summary Well Name: La Land & Exploration Co B 001 API #: 17-075-01679 Operator: Tenneco Inc. County: Plaquemines Parish, LA Production Dates on File: No Production Data Available Map of La Land & Exploration Co B 001 La Land & Exploration Co B 001 Well 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). During the 1950s, CEO Robert M. Youngs began investing in working interest wells. Contact Information Website lle.com Ownership Respondent's position, although technically viable, is supported neither by legislative history nor by common usage of the term "natural gas." pelts, especially muskrat; second only to Texas in oil and natural (e) DEFINITIONS.For purposes of this section. It insisted that drillers bury pipe so as to not disrupt grasses or aquatic life, and it constructed pumps and water control structures to prevent erosion or saltwater intrusion. 6903 (1975) (statement of Senator Bentsen). The extent of the damages, if any, suffered by LL & E must be determined in a further proceeding. 3301 et seq. 613A(c)(3). 7239 (remarks of Senator Hollings). (b) EXEMPTION FOR CERTAIN DOMESTIC GAS WELLS.. 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. 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. Leagle.com reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions. LL&E enjoyed a good exploration year in 1990. WebThe Louisiana Land and Exploration Co. (LLEC) (defendant) claimed that it was the actual owner of the land between the Liners recorded title boundary and Bayou Dufrene. 121 Cong. WebThe Louisiana Land and Exploration Company 909 Poydras Street P.O. 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 venture's finances faltered and in time there were foreclosures. Phillips Petroleum Co. Poydras Energy Partners, LLC Shoreline Southeast LLC Tenneco Inc. Texaco, Inc. Union Pacific Resources Co. Drilling wells, permits, operators and production information can give you an We offer full engineering support and work with the best and most updated software programs for design SolidWorks and Mastercam. 4638 (1975); S. Rept. This uncontradicted and consistent legislative record, therefore, reveals that Congress was concerned only with oil and gas when it approved section 613A. 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. Sulphur has been recovered from hydrogen sulfide and sold as a by product of the processing facilities since the facilities were placed in operation. Brine water, water with a high mineral content, is the nonhydrocarbon liquid extracted from the Jay Field wells. 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." It is true that the statutory language on its face is incongruous. 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". 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. 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 1966 he acquired Jacintoport Corporation, an industrial real estate firm with Gulf Coast holdings such as the Houston Ship Channel. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT, United States Tax Court.https://leagle.com/images/logo.png. area, List of school districts in The primary products from the Jay Field wells and processing facilities have been oil and natural gas. THE LOUISIANA LAND AND EXPLORATION COMPANY AND SUBSIDIARIES, PETITIONERS Under the circumstances, we cannot say that the gas in question was subject to an existing contract at the time of the NGPA's enactment. (a) GENERAL RULE.In the case of the mines, wells, and other natural deposits listed in subsection (b), the allowance, for depletion under section 611 shall be the percentage, specified in subsection (b), of the gross income from the property excluding from such gross income an amount equal to any rents or royalties paid or incurred by the taxpayer in respect of the property. 8128, and Senator Curtis added, "Our first objective should be the production of more gas and oil." Louisiana. LOUISIANAS MOST CAPTIVATING HUNTING LODGE & WILDLIFE RESERVE. Under the agreement, LL&E retained a 25 percent working interest and a 20 percent royalty in Texaco's share of production. Field / Formation: GOLDEN MEADOW / THE LA LAND & EXPLORATION CO M 001: Well Status: DRY AND PLUGGED: Well Type: Township Range Section: 19S 22E 039: Derrick Elevation: Members Only: Kelly Bushing Elevation: Lease No. 1965), cert. ), among them 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. Not satisfied? Finally, respondent's interpretation of section 613A conflicts with normal usage of the term "natural gas" as meaning fuel. Click on the case name to see the full text of the citing case. We must decide whether section 613A eliminates the section 613 percentage depletion rate on sulphur when hydrogen sulfide is produced from an oil and gas well and subsequently converted into elemental sulphur. The goal of the legislation was to continue to provide the tax incentive of percentage depletion to small producers and royalty owners to encourage exploration for and exploitation of domestic oil and gas reserves while eliminating such tax incentives for the major integrated oil companies.