Mesa Petroleum Co. v. Commissioner
United States Tax Court
Petitioner operated gas properties under leases calling for it to pay its lessors one-eighth of the proceeds from the actual sale of the gas and its products, reduced by an aliquot share of the costs of transporting, processing, and marketing the gas. The parties have stipulated the representative market or field price for the gas at the wellhead.
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Petitioner operated gas properties under leases calling for it to pay its lessors one-eighth of the proceeds from the actual sale of the gas and its products, reduced by an aliquot share of the costs of transporting, processing, and marketing the gas. The parties have stipulated the representative market or field price for the gas at the wellhead. Held, petitioner must compute its percentage depletion allowance under sec. 613, I.R.C. 1954, on the basis of the amount remaining after the gross income from the property, calculated under the representative market or field price method, has been…
1Opinion of the Court
Mesa Petroleum Co. (as Corporate Successor to Hugoton Production Company), Petitioner v. Commissioner of Internal Revenue, Respondent
Mesa Petroleum Co. v. Commissioner
Docket No. 5139-69
United States Tax Court
58 T.C. 374; 1972 U.S. Tax Ct. LEXIS 115; 42 Oil & Gas Rep. 512;
May 25, 1972, Filed
Decision will be entered under Rule 50.
Petitioner operated gas properties under leases calling for it to pay its lessors one-eighth of the proceeds from the actual sale of the gas and its products, reduced by an aliquot share of the costs of transporting, processing, and marketing the gas. The parties have…
2Cases cited19 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Palmer v. BenderSupreme Court of the United States · 1932
- Burton-Sutton Oil Co. v. CommissionerSupreme Court of the United States · 1946
- Commissioner v. Southwest Exploration Co.Supreme Court of the United States · 1956
- Thomas v. PerkinsSupreme Court of the United States · 1937
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