Pelle Karlsson and EvelynT. Karlsson - Page 23

                                               - 23 -                                                 

            did become somewhat involved with Elektra, he committed to                                
            working for Elektra or the related partnerships only 10 hours per                         
            calendar quarter.  Also, the various partnerships, including                              
            Cromwell, were obligated to pay significant additional fees under                         
            separate contracts for Doscher's services at Burnt Hollow.                                
            Further, as of 1979, all of Doscher's technology patents had been                         
            assigned to Shell Oil Co. and thus would not have been available                          
            to the partnerships.  Doscher's services were not furnished under                         
            the Elektra license.  Finally, during this time period, the                               
            services of a number of qualified thermal experts, including                              
            Doscher, were generally available.  Clearly, Cromwell's                                   
            exorbitant license fees are not justified merely because Doscher,                         
            in 1981, became affiliated on a limited basis with the                                    
            partnerships.                                                                             
                  (7) Petitioners' contention that during 1979 through 1982                           
            fixed fees for licenses of technology were not unusual is not                             
            supported by any credible evidence.  Ham’s testimony is based                             
            largely on irrelevant property transactions and drilling deals                            
            and on incomplete information.  The fluidized bed technology that                         
            he discusses does not even constitute an oil recovery technology.                         
            Ham refers to up-front fees charged by Carmel Energy Corp., but                           
            he ignores the fact that those fees represented a component for                           
            engineering services, not a license for technology.  Ultimately,                          
            Ham acknowledges that he was not aware of other transactions                              





Page:  Previous  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  Next

Last modified: May 25, 2011