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Total fixed EOR license fees agreed to by the five so-called
Denver-1981 partnerships and the two Denver-1982 partnerships
(groups of particularly related limited partnerships which
included Drake) totaled $310,214,500.
Hemisphere, however, had obtained rights to use and license
the same EOR technology that it had licensed to Drake for running
royalties based on actual incremental increased recovery of oil
attributable to use of the technology. Hemisphere was obligated
to pay no fixed license fees for the EOR technology.
Of the total cash contributions received from limited
partners by the five Denver-1981 partnerships (including Drake),
excessive amounts were paid to various promoters, lawyers,
accountants, and salesmen, and little was available for
development of EOR technology. Expenses paid apparently relating
just to formation and organization of the five Denver-1981
partnerships including Drake totaled $552,468.
In his capacity as general partner of various related
partnerships, Coppage received approximately $2,061,925, of which
$272,325 was received from Drake. Coppage's wholly owned
corporation, related entities, and employees thereof directly or
indirectly received at least an additional $504,443.
Various salesmen received a total of $4,143,515 in
connection with the sale of limited partnership units in the five
Denver-1981 partnerships.
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Last modified: May 25, 2011