Charles A. Greene and Christine J. Greene - Page 7

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          Petitioner's Evaluation of Mid Continent                                    
               Petitioner discussed with Corman the tax benefits he might             
          receive from Mid Continent and as a result, he expected some                
          "flow-throughs" of losses and investment tax credits.  Petitioner           
          "read some paperwork" about Mid Continent that included various             
          forms and reports.  At the time of his investment petitioner                
          received and reviewed a document that bore the title "Terra                 
          Drill".  He reviewed a partnership prospectus for Mid Continent,            
          and he produced at trial a document the first page of which is              
          numbered "35" and is entitled "Summary of Partnership Agreement".           
          The second through eleventh and final pages of the document are             
          numbered "B9" through "B18" and discuss solely tax aspects of the           
               Petitioner also received a subscription agreement for Mid              
          Continent that he reviewed at the time he purchased his interest            
          from Fields.  Paragraph 2.(k) at page 3 of the four-page                    
          subscription agreement provides in part:                                    
               I understand that no state or Federal governmental                     
               authority has made any finding or determination                        
               relating to the fairness for public investment of the                  
               Units in the Partnership and that no state or Federal                  
               governmental authority has recommended or endorsed, or                 
               will recommend or endorse, these Units.                                
               Petitioner was aware that Corman did not have a "vast                  
          knowledge of oil and gas" matters and that Corman's advice on the           
          Mid Continent partnership was based solely on his reading of the            

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Last modified: May 25, 2011