West v. Commissioner
United States Tax Court
In 1938 petitioners and the West Foundation entered into an arrangement with Humble Oil & Refining Co., evidenced by a deed, a supplemental agreement, and an assignment, with reference to certain lands, leases, and mineral rights, excepting and reserving to themselves a specified royalty interest in the minerals in all properties involved. Humble paid $ 8,032,145.26 in cash and obligated itself to drill, develop, and operate the properties for oil, gas, and other minerals.
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In 1938 petitioners and the West Foundation entered into an arrangement with Humble Oil & Refining Co., evidenced by a deed, a supplemental agreement, and an assignment, with reference to certain lands, leases, and mineral rights, excepting and reserving to themselves a specified royalty interest in the minerals in all properties involved. Humble paid $ 8,032,145.26 in cash and obligated itself to drill, develop, and operate the properties for oil, gas, and other minerals. Held, the transaction effected a sale of the surface of the land and the improvements thereon, and a leasing arrangement…
1Opinion of the Court
OPINION.
ARnold, Judge-.
Petitioners contend that the deed executed by them was a deed of bargain and sale which passed to Humble title not only to the surface of the land, but to the minerals in and under it as well. They further contend that, since the land and minerals were conveyed by an absolute deed of bargain and sale, the provisions of the supplemental contract, herein called the agreement, could not and did not have the effect of converting the conveyance into a lease. And, finally, petitioners contend that the transaction with respect to the Hutcheson and Sowden leases was a sale of…
2Cases cited16 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Burnet v. HarmelSupreme Court of the United States · 1932
- Palmer v. BenderSupreme Court of the United States · 1932
- Helvering v. StuartSupreme Court of the United States · 1942
- Anderson v. HelveringSupreme Court of the United States · 1940
11 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Pridemark, Inc. v. CommissionerUnited States Tax Court · 1964
- Olinger v. CommissionerUnited States Tax Court · 1956
- Remer v. CommissionerUnited States Tax Court · 1957
- Ellis Campbell, Jr., District Director of Internal Revenue v. David Fasken and Inez G. FaskenCourt of Appeals for the Fifth Circuit · 1959
- Jahn v. CommissionerUnited States Tax Court · 1972
10 more not listed; retrieve them via the Exa API.