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1978, Terra’s vice president of finance testified before a
U.S. Department of Energy board:
Terra is responsible to [petitioner] for the
exploration, development and production of as
high a percentage as possible of the crude oil
and natural gas needed as raw materials for
[petitioner’s] refineries and fertilizer
manufacturing plants. Terra’s specific goal
over the next five years is to materially
increase the 14 percent of [petitioner’s] oil
and gas raw material needs as it is now
supplying.
Between fiscal years 1971 and 1975, total expenditures for
the acquisition and development of new producing properties
increased from $3,239,601 annually to $13,694,678. Terra
spent $13,403,739 on the acquisition and development of
production properties during the 6-month period ending
February 29, 1976, alone. During its 1975 fiscal year,
Terra purchased producing properties for a total cost of
$29,098,615. This added approximately 6,718,500 barrels of
crude oil and 16,123,700 million cubic feet of natural gas
to Terra’s reserves. Between fiscal years 1971 and 1975,
Terra’s production of crude oil, including its share of the
production of CRA International, decreased from a high of
4,345,600 barrels in fiscal year 1971, to a low of
3,805,238 barrels in fiscal year 1973, before increasing
again to 4,070,748 barrels in fiscal year 1975.
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