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any research or experimentation activities were conducted
pursuant to the exclusive research and development agreements
entered into between Yuma Mesa and HTP, and between Cactus Wren
and MBP, and as to the extent and nature of any such research
activities. Luna is an engineer employed by the Internal Revenue
Service in Dallas, Texas. He visited the site of the jojoba
plantations in Yuma, Arizona, and inspected the growing jojoba.
He is qualified to testify as an expert in the instant cases as
to the matters set forth in his report. Petitioners did not call
an expert witness on their behalf.
In the report prepared with respect to the Yuma Mesa
partnership, Luna concluded that the activities conducted on the
130 acres controlled by Yuma Mesa between December 31, 1982, and
December 31, 1986 (plantation I), were aimed at the creation of a
mature jojoba farm and were not designed or carried out for the
purpose of acquiring information about jojoba that was unknown at
the time. Luna found that few, if any, scientific procedures
were established for the conduct of the proposed research. There
was no outline or timetable for completion of any proposed R&D
project.
Luna concluded that investigation and evaluation of the
suitability of the climate in Yuma, Arizona, for raising jojoba
was not a research endeavor undertaken by Yuma Mesa. If, in
fact, climatic conditions for growing jojoba had been a goal of
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