Farmland Industries, Inc. - Page 37




                                       - 32 -                                         
             unusual.  Of the amount of crude oil processed by the CRA                
             refineries, the percentage that was produced by Terra is                 
             petitioner’s self-sufficiency.  The self-sufficiency ratio               
             for an integrated oil company is the ratio of the quantity               
             of the crude oil produced by the company to the quantity of              
             crude oil processed by its refineries.                                   
                  At no time during its existence did Terra and the                   
             other exploration subsidiaries meet petitioner’s goal of                 
             obtaining a 50-percent self-sufficiency ratio, that is, of               
             producing 50 percent of its refineries’ needs.  The volume               
             of crude oil processed at CRA’s refineries, and the volume               
             of such crude oil that was produced by Terra from 1971 to                
             1982 were as follows:                                                    

                       Crude Processed atCrude Produced By                               
                       CRA Refineries Terra          Self-sufficiency                 
                  Year (Barrels per day)1(Barrels per day)Ratio                            
                  1971 52,085         11,904         22.85                            
                  1972 53,852         11,555         21.46                            
                  1973 51,997         10,425         20.05                            
                  1974 56,959         11,033         19.37                            
                  1975 62,271         11,312         18.17                            
                  1976 68,527         13,249         19.33                            
                  1977 71,756         13,455         18.75                            
                  1978 71,926         12,636         17.57                            
                  1979 76,167         11,597         15.23                            
                  1980 71,434         10,937         15.31                            
                  1981 68,896         10,310         14.96                            
                  1982 55,932         9,984          17.85                            
                  1 This does not include amounts refined at the NCRA refinery, of which petitioner
             was part owner.                                                          

             Petitioner’s goal of 50 percent self-sufficiency did not                 
             represent an industry standard or have a particular                      
             economic motive.  The decline in self-sufficiency between                






Page:  Previous  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  38  39  40  41  Next

Last modified: May 25, 2011