- 9 - or investments. Rather, his experience involved the promotion of tax shelters. For the right to use certain allegedly extant EOR technology, Cromwell agreed to pay Elektra fixed license fees of $35,000 per year for 5 years for each limited partnership unit sold to investors. Based on the 51 limited partnership units in Cromwell that were sold, Cromwell agreed to pay total fixed license fees to Elektra of $8,925,000. Elektra, however, had obtained rights to use and license the same technology that it had licensed to Cromwell for only running royalties based on actual incremental increased recovery of oil attributable to use of the technology. Elektra was obligated to pay no fixed license fees for the technology. Cromwell's license agreement with Elektra was not materially different from the license agreements entered into by Technology- 1980 with Elektra. For the right to use EOR technology on specified tar sands acreage in Utah and Wyoming, Cromwell agreed to pay TexOil a fixed minimum royalty of $5,000 per year for 20 years for each limited partnership unit sold to investors. On the basis of the 51 limited partnership units in Cromwell that were sold, Cromwell agreed to pay total minimum royalties to TexOil of $5,100,000. TexOil, however, had agreed to pay a total of $100 an acre for the same tar sands acreage. Acreage assigned to Cromwell wasPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011