- 26 -
correlation curve by plotting the actual 1,000,000 cp plus
viscosity of the tar at Burnt Hollow at 90 degrees Fahrenheit,
projected oil recovery approaches zero.
Petitioners also dispute our findings in Krause v.
Commissioner, supra, that Cromwell's offering memorandum was
misleading and overly optimistic in describing the licensed EOR
technology. Petitioners make reference to Government investment
in EOR technology and to projections of possible cumulative
production. Petitioners make unsupported projections of
conceivable profit from a single EOR technology. This is not
persuasive. Petitioners make no attempt to tie any of this
general material into the specifics and reality of Cromwell's
activity.
Similar to the offering memorandum of Technology-1980,
Cromwell's offering memorandum is not candid about the small
likelihood of successfully applying unconventional and
undeveloped EOR technology to properties with no history of
success and where the oil resource has not been defined.
In summary, the material factual differences that
petitioners allege exist as between their investments in and the
activities of Cromwell and the investments in and activities of
Technology-1980, as found in Krause v. Commissioner, supra, are
not supported by any credible evidence.
Petitioners make no explicit claim that we, in the Krause v.
Commissioner, supra, opinion, made any error of law, but
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