Pelle Karlsson and EvelynT. Karlsson - Page 12

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            sands properties and that Cromwell had a unique relationship with                         
            Todd Doscher, an internationally recognized expert in EOR                                 
            technology.  To the contrary, only Technology-1980's license had                          
            any provision for using the technology on additional property it                          
            might acquire, and any expertise that Todd Doscher had to offer                           
            would benefit all of the partnerships equally.                                            
                  Petitioners argue that Cromwell’s license for EOR technology                        
            reflected significantly more favorable terms than Technology-                             
            1980's license.  As persuasively established, however, by                                 
            respondent's expert, John R. Dosher of The Pace Consultants,                              
            Inc., in spite of nominal differences, the licenses of the                                
            various partnerships contained no material differences.                                   
            Cromwell’s license committed Cromwell to unjustified, fixed fees                          
            that were linked to the number of partnership units sold, and to                          
            an additional royalty on actual production.                                               
                  Technology-1980’s license provided the option for                                   
            Technology-1980 to terminate its license and limit the fixed                              
            fees.  Cromwell’s license did not have this option.                                       
                  While Cromwell’s license provided for a reduction of the                            
            fixed fees based on production royalties actually paid, this                              
            provision would be meaningful only in the event of commercial                             
            production.  Considering the unlikely chance that production                              
            would occur, any benefit from this provision is illusory.                                 







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