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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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