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business operations is the fact that petitioner did not even pay
its franchise tax.”).
CDC's lack of business in 1984 resulted from adverse
business conditions. William Glass, the former president of Big
Chief Drilling Co., a competitor of CDC, testified that as long
as a drilling contractor owned rigs, it could be in the drilling
business. Jerry Suits, president of Suits, and Charles Hinton,
the former president of W.B. Hinton Drilling Co., both testified
that there were instances when their own deep drilling rigs were
not drilling, but their companies remained in the drilling
business. Additionally, Dr. Preston L. Moore, one of
petitioner's expert witnesses, testified that, during the years
leading up to the change of ownership, “These rigs were being
maintained in a state of readiness to drill. People were out
trying to get contracts. The contracting business goes on. The
fact that the rigs aren't working does not mean the business is
not an ongoing business.” CDC always intended to remain in the
contract drilling business. Mr. Arnold testified that CDC always
intended to be in the contract drilling business and never
intended to get out of that business.
Furthermore, under the facts here present, the filing of a
petition in bankruptcy does not indicate that CDC meant to cease
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