General Dynamics Corporation and Subsidiaries - Page 9

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               Pantheon, Inc. (Pantheon), is a wholly owned domestic                  
          subsidiary of GENDYN.  Pelmar Co. (Pelmar) and Morgas, Inc.                 
          (Morgas), are wholly owned domestic subsidiaries of corporations            
          unrelated to petitioners.  On May 7, 1976, Pantheon, Pelmar, and            
          Morgas formed the Lachmar Partnership (Lachmar), a general                  
          partnership.  Pantheon and Pelmar each owned 40 percent, and                
          Morgas owned the remaining 20 percent of Lachmar.  Lachmar was              
          organized for the purpose of purchasing, owning, and operating              
          two specialized vessels (LNG tankers) that were designed and                
          built for transoceanic transport of liquefied natural gas (LNG).            
               LNG is made by cooling natural gas to a temperature below              
          minus 256 degrees Fahrenheit.  It is then transported at that               
          temperature in special-purpose tankers.  After delivery from the            
          tankers, the LNG is returned to a state in which it can be                  
          distributed through pipelines.  The construction of LNG tankers             
          incorporates specialized and expensive technology which when                
          installed in a tanker renders it economically unusable for other            
          transportation purposes.  Due to the cost to specially build them           
          and the lack of economically feasible convertibility, LNG tankers           
          are normally constructed for well-defined long-term projects, and           
          there is virtually no open market for LNG tankers.                          
               There are four LNG terminals within the contiguous United              
          States and one in Alaska, all of which are capable of landing and           
          receiving the type of LNG tanker under consideration in this                
          case.  Throughout the period under consideration, it was not                




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