Samson Investment Company and Subsidiaries - Page 37

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          periods, had the contract drilling economy improved, it could               
          have used its rigs as a contract driller.                                   
               We have determined that CDC was in the contract drilling               
          business prior to the change of ownership.  Therefore, to be                
          entitled to deduct the NOL's, it follows that CDC must have                 
          continued in the contract drilling business after the change of             
          ownership.  In H.F. Ramsey Co. v. Commissioner, 43 T.C. at 514,             
          we reviewed the legislative history of section 382 and concluded            
          that “it would appear that there has to be a real change in the             
          type of business conducted to come within * * * [the] statute.”             
          Accord Clarksdale Rubber Co. v. Commissioner, 45 T.C. 234 (1965);           
          Goodwyn Crockery Co. v. Commissioner, supra.  Both before and               
          after the acquisition, CDC's operations are best described as a             
          contract drilling operation.                                                
               The facts in the record indicate that had CDC been in the              
          business of buying and selling rigs, as respondent contends, CDC            
          would have operated in a substantially different manner.  After             
          the change of ownership, CDC continued to maintain its rigs to              
          keep them in a state of readiness for drilling.  Had CDC been               
          trying to sell its rigs, the maintenance would have been lower              
          cost and more cosmetic in order to enhance the visual appeal of             










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