Night Hawk Leasing Co. v. Commissioner
United States Board of Tax Appeals
1. Where the petitioner obtained without cost a lease to mine copper on a royalty basis from a lessor with an established depletion rate and subsequently entered into an agreement with the lessor to apportion this depletion, held that the petitioner was not entitled to an allowance for depletion. 2. Where a depletion rate has been established on a certain claim and no showing of a materially increased mineral content is made, the respondent's determination will not be…
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1. Where the petitioner obtained without cost a lease to mine copper on a royalty basis from a lessor with an established depletion rate and subsequently entered into an agreement with the lessor to apportion this depletion, held that the petitioner was not entitled to an allowance for depletion. 2. Where a depletion rate has been established on a certain claim and no showing of a materially increased mineral content is made, the respondent's determination will not be disturbed.
1Opinion of the Court
*260OPINION.
Black :
The petitioner, during the years under consideration, was mining copper on two adjoining leased properties known as the *261Night Hawk Lease and the Fraction No. 1 Lease. The latter claim was operated under a lease which it had obtained from the Phelps Dodge Corporation in 1919, which provided for a specific royalty as the copper was removed, but required no other acquisition cost, advance royalty or bonus. The known March 1, 1913, copper value allowable to the Phelps Dodge Corporation on Fraction No. 1 Lease had been established for depletion purposes at 4.11 cents per pound. Late…
2Cases cited1 opinion
- United States v. LudeySupreme Court of the United States · 1927
3Cited by2 opinions
- Night Hawk Leasing Co. v. United StatesUnited States Court of Claims · 1937
- Night Hawk Leasing Co. v. CommissionerUnited States Board of Tax Appeals · 1930