Crossett Timber & Development Co. v. Commissioner
United States Board of Tax Appeals
1. Petitioner received from its lessee a sum in settlement of a claim that the lessee had not produced from petitioner's lands one third of the lessee's total production of gas in accordance with the operating agreement. Held, the amount so received is not "income from the property" and not subject to percentage depletion allowance. 2. Petitioner paid to its lessee one half the cost of drilling four gas wells under an option to do so in the operating agreement.
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1. Petitioner received from its lessee a sum in settlement of a claim that the lessee had not produced from petitioner's lands one third of the lessee's total production of gas in accordance with the operating agreement. Held, the amount so received is not "income from the property" and not subject to percentage depletion allowance. 2. Petitioner paid to its lessee one half the cost of drilling four gas wells under an option to do so in the operating agreement. Upon electing so to participate petitioner relinquished all right of ownership in the wells and was granted additional royalties.…
1Opinion of the Court
CROSSETT TIMBER & DEVELOPMENT COMPANY, INC., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Crossett Timber & Development Co. v. Commissioner
Docket Nos. 62294, 67775.
United States Board of Tax Appeals
29 B.T.A. 705; 1934 BTA LEXIS 1490;
January 10, 1934, Promulgated
1. Petitioner received from its lessee a sum in settlement of a claim that the lessee had not produced from petitioner's lands one third of the lessee's total production of gas in accordance with the operating agreement. Held, the amount so received is not "income from the property" and not subject to percentage…
2Cases cited13 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Palmer v. BenderSupreme Court of the United States · 1932
- Murphy Oil Co. v. BurnetSupreme Court of the United States · 1932
- Bankers Pocahontas Coal Co. v. BurnetSupreme Court of the United States · 1932
- Ramsey v. CommissionerUnited States Board of Tax Appeals · 1932
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