Frank E. Acierno - Page 17

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          royalties if any actual production resulted from use of the                 
          licensed EOR technology.                                                    
               Other differences alleged by petitioner have no                        
          significance.                                                               
               All of the partnerships, including Drake and Barton, were              
          organized around similar stated fixed license fees that were                
          based on a portfolio of technology, the total amount of which was           
          based on the number of partnership units sold.  The licensed                
          technology was either merely conceptual or could have been                  
          obtained with no fixed fees.  Krause v. Commissioner, supra at              
          158-163.                                                                    
               The stated consideration that Drake agreed to pay for the              
          licenses was excessive, did not bear any relationship to what was           
          acquired, and was designed to generate deductions that would                
          produce losses for the investors far in excess of what they                 
          contributed in cash to the partnerships.  Neither Basile,                   
          Coppage, nor Krause independently investigated or attempted to              
          determine the fair market value of the licenses.  Id. at 146,               
          155.                                                                        
               At the time the partnerships obtained licenses of EOR                  
          technology, the partnerships had no idea what technology they               
          might need or whether the technology they had licensed would, or            
          even could, be utilized.  This is true for all of the                       
          partnerships, whether they had leased acreage in the Utah tar               






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