Section 613(b)(1)(A) provides that sulphur is depletable at a 22-percent rate. As if to bear out this description, LL&E's mining operation lost $7.8 million in 1977 and $6.6 million in 1978. Deteriorating economic conditions, windfall profits taxes, high dry hole costs, narrower profit margins, and declining demand all pressured earnings. 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. Rec. The company became a public company . At Furnel, Inc. we understand that your projects deserve significant time and dedication to meet our highest standard of quality and commitment. Sec. Its price is not regulated by the Federal Power Commission. Oil and Gas Producers | Houma, LA - Manta.com (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. The nonhydrocarbon gases extracted from the Jay Field wells are primarily hydrogen sulfide and carbon dioxide. No damages have yet been proven, and indeed, the partial summary judgment would be proper even if none are ever established. 1965), cert. It is true that the statutory language on its face is incongruous. 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 also sought to expand riskier but potentially more lucrative foreign exploration. 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.). 121 Cong. Milling, Benson, Woodward, Hillyer, Pierson & Miller, Charles D. Marshall, Jr., Appeal Counsel, David N. Schell, Jr., New Orleans, for plaintiff-appellee Louisiana Land and Exploration Co. Gene W. Lafitte, Appeal Counsel, George J. Domas, Anne E. Tate, Liskow & Lewis, and Frederick W. Veters, Patrick J. Butler, Larry N. Port, Robert E. Plumb, Jr., James D. Hurley, Texaco Inc., New Orleans, for defendant-appellant Texaco, Inc. We further conclude that section 613A applies only to hydrocarbon fuels produced from oil and gas wells and does not affect eligibility for percentage depletion for other minerals produced from oil and gas wells. The early 1960s proved very successful for LL&E. Petitioners are calendar year, accrual method taxpayers. Listed below are those cases in which this Featured Case is cited. For the purposes of this subsection, minerals (other than sodium chloride) extracted from brines pumped from a saline perennial lake within the United States shall not be considered minerals from an inexhaustible source. We agree with the district court that Section 109 applies. Wisner's plans, however, were thwarted by southern Louisiana's severe weather. Texaco's argument is based upon isolating the term "sold under" in subsection (a) of Section 105, rather than reading the Section as a whole to determine its meaning. 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 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. As the largest owner of environmentally sensitive wetlands in the continental United States, LL&E had long been careful to protect its investment. 121 Cong. A 1915 hurricane destroyed many of the levees that Wisner had constructed. Lease No. 204(c)(2), 44 Stat. The goal of the legislation was to eliminate what was perceived to be an unneeded tax incentive only for the major integrated oil companies. Oil and gas often become trapped in the pockets that form around these structures.) Petitioner argues that the definition of "natural gas" in section 613A(e)(2) is intended only to distinguish between hydrocarbon natural gases and crude oil. The remainder of central and north Louisiana was home 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 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. 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. Since then, the area around Paradis has attracted generations of hunting and outdoor enthusiasts alike. 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. 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. Section 613A does not deny percentage depletion for [carbon dioxide]. The extent of the damages, if any, suffered by LL & E must be determined in a further proceeding. LL&E is a Maryland corporation having its principal office at New Orleans, Louisiana. divided into 64 parishes (the only state to use this term for its 613A(c)(3). Sec. The main lodge located at The Island was built entirely from cypress logged and timbered from the Des Allemands area. 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. Sec. Sulphur is mentioned once in the congressional debates as part of a list of 108 mineral extractive industries for which percentage depletion was retained. Milling, Benson, Woodward, Hillyer, Pierson & Miller, Charles D. Marshall, Jr.. 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. WebThe Louisiana Land and Exploration Company 909 Poydras Street P.O. 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. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT, United States Tax Court.https://leagle.com/images/logo.png. Percentage depletion for natural resources has been a part of the Internal Revenue Code since the Revenue Act of 1926. The well effluent from the Jay Field wells is treated in facilities adjacent to the wells. In 1964 the company reported profits of $32.1 million on sales of $64.1 million. It was solely Texaco's choice to meet its obligations to these customers with LL & E's gas. There are generally two types of marketing contracts for the sale of gas. Louisiana Land & Exploration Co ", But while Graham focused on controlling costs, he, like other CEOs of that era, also sought profits in new businesses. "It was a very unusual contract for 1928," LL&E president Ford Graham told Dun's Review in 1965. Click on the case name to see the full text of the citing case. 613A(e)(2). Cf. This appeal stems from the granting of a motion for partial summary judgment in favor of the Louisiana Land and Exploration Company (LL & E). The acid gases (hydrogen sulfide and carbon dioxide) are separated from the natural gas through an absorption process. When brought to the surface, all of the items in the wells are physically mixed. The Louisiana Land and Exploration Company In 1966 he acquired Jacintoport Corporation, an industrial real estate firm with Gulf Coast holdings such as the Houston Ship Channel. At that time, the lodge housed Louisiana Land & Exploration Co/The - Company Profile LOUISIANA LAND AND EXPLORATION, COMPANY, THE Wednesday, July 9, 1997. WebThe Louisiana Land and Exploration Company Overview. Oil and gas have been extracted from wells containing a trace quantity of hydrogen sulfide and from wells containing as much as 90-percent hydrogen sulfide. Subparagraph (C), which states the oil and gas well exception from depletion, states simply "oil and gas wells." State in S USA, 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." 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 (A salt dome is a raised central area of salt or rock, around which beds of sedimentary rock dip in all directions. Also, the company opened its first regional office in Shreveport, LA after acquiring the oil and gas division of T.L. And when we're finished we don't own the computer or have the people on our permanent payroll. The Louisiana Land and Exploration Company LLC main competitors are Tallgrass Energy, BP Pipelines, and Vastar Resources. 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. 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. WebLouisiana Land & Exploration Co/The - Company Profile and News - Bloomberg Markets Bloomberg Anywhere Remote Login Manage Products and Account Information Indices The gaseous hydrocarbons, or natural gases, exist in a gaseous state at ambient temperature and pressure and consist primarily of methane, ethane, propane, and butane. 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. WebLouisiana Land & Exploration Co. / API # 33-023-00257 Well Summary Well Name: Germany 34-14 1 API #: 33-023-00257 Operator: Louisiana Land & Exploration Co. County: Divide County, ND Production Dates on File: No Production Data Available Map of Germany 34-14 1 Germany 34-14 1 Well Details Nearby Wells API # 33-023-00448 | Burtman 19-1 This appeal stems from the granting of a motion for partial summary judgment in favor of the Louisiana Land and Exploration Company (LL & E). All Rights Reserved 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.). La Land Click on the case name to see the full text of the citing case. 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. The company was incorporated in 2010 and is based in New Orleans, Louisiana. Louisiana v. Sec. See Black's Law Dictionary 1278 (5th Ed.1979). 1885). rice. The diagram on the facing page summarizes the sour production processing system used at the Jay Field Wells. In 1930 Texaco also agreed to pay LL&E's $1.8 million funded indebtedness. 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. History Timeline Information hosted on The Drillings is based on publicly available data through the Bureau of Land Management. 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 typical well stream in the Jay Field contains approximately 8.5 percent hydrogen sulfide and 2.2 percent carbon dioxide. "We pay 25 percent of the cost," Ford Graham enthusiastically told Dun's Review "and get 40 percent of the income. the Civil War, is Charles Gayarr's History of Louisiana WebSuperior Performance Oil And Gas Exploration Service 122 Youngsville Hwy Lafayette, LA 70508 Lease No. 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. Rec. and a .03 percent Louisiana Tourism Promotion District sales 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. 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. 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. The Louisiana Land and Exploration Company LLC is a relatively young WebThe Louisiana Land and Exploration Company Address: 909 Poydras Street P.O. fertile delta lands; further inland are plains and low rolling As the company expanded into working interests, it hired geologists, geophysicists, and engineers. Ronald H. Texaco additionally contends that partial summary judgment was procedurally improper in this case both because the decision did not determine any portion of its liability to LL & E and because there are issues of disputed fact that prevent summary judgment.

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