Utah Jojoba I Research, William G. Kellen, Tax Matters Partner - Page 23

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          2.  The Expert--Levi Chen                                                    
               Levi Chen (Chen) testified for respondent as to whether any             
          research or experimentation activities were conducted pursuant to            
          the exclusive R&D agreement entered into between Utah I and U.S.             
          Agri, and as to the extent and nature of any such research                   
          activities.  Chen is an engineer employed by the Internal Revenue            
          Service in Los Angeles, California.  He visited the site of the              
          jojoba plantation in Desert Center, California, and inspected the            
          growing jojoba in May 1986.  Chen also visited U.S. Agri's                   
          laboratory and greenhouse in Riverside, California.  He is                   
          qualified to testify as an expert in the instant case as to the              
          matters set forth in his report.  Petitioner did not call an                 
          expert witness to testify.                                                   
               In the report he prepared with respect to the Utah I                    
          partnership, Chen concluded that the activities conducted on the             
          80 acres controlled by Utah I between December 31, 1982, and                 
          December 31, 1986, were irrigation, fertilization, and herbicide             
          field tests combined with efforts to select superior jojoba                  
          plants for propagation.  The field tests were carried out using              
          commercially available herbicides, such as "Roundup" and                     
          "Princep", and commercially available fertilizers, such as "Uran             
          32", and a "10-34-0"5 mixture in different combinations, which is            


          5    The amended research plan refers to the fertilizer as simply            
          "10340".                                                                     




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