- 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 was
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Last modified: May 25, 2011