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separation." Watson v. Commissioner, supra at 552. We think the
instant case is more like Butler Consol. Coal Co. v.
Commissioner, supra, because the unmined sand was not separated
from the land. Respondent contends that Butler Consol. Coal is
distinguishable from this case. Respondent points out that
petitioners operated the sand mine until the day they exchanged
the land, while the taxpayer in Butler Consol. Coal stopped
operating the mine 11 years before the transaction at issue. We
disagree that the distinction is material. The Court in Butler
Consol. Coal observed that "Coal in place is a part of the
realty." Primarily for that reason, the Court rejected the
Commissioner's argument that the coal in place was held by the
taxpayer for sale to customers in the ordinary course of
business. In the present case, similarly, the sand in question
had not been mined or otherwise separated from the realty. In
addition, we have found that the parties to the sale did not
intend to sell and buy sand as part of the transaction.
Respondent contends that the instant case is like Clemente,
Inc. v. Commissioner, T.C. Memo. 1985-367. There, the taxpayer
exchanged the right to extract gravel from one parcel of land
(but did not exchange the land itself) for another parcel of
land. The issue before the Court was whether land and the right
to extract gravel from land were of a like kind. That case does
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