Farmland Industries, Inc. - Page 39




                                       - 34 -                                         

                       Crude      Crude   Amount Of   Actual                          
                      Processed  Produced   Product  Crude UsedTrue Self-             
               Year   By CRA    By Terra  Utilized   By CRA    Sufficiency            
               1971    52,085     11,904    40.80%    4,857     9.32%                 
               1972    53,852     11,555    51.80%    5,985     11.11%                
               1973    51,997     10,425    43.50%    4,535     8.72%                 
               1974    56,959     11,033    65.20%    7,194     12.63%                
               1975    62,271     11,312    70.20%    7,941     12.75%                
               1976    68,527     13,249    56.00%    7,419     10.83%                
               1977    71,756     13,455    67.00%    9,015     12.56%                
               1978    71,926     12,636    69.00%    8,719     12.12%                
               1979    76,167     11,597    72.00%    8,350     10.96%                
               1980    71,434     10,937    87.00%    9,515     13.32%                
               1981    68,896     10,310    97.00%    10,001    14.52%                
               1982    55,932     9,984     96.00%    9,585     17.14%                
              Average  62,446     11,632    67.96%    7,760     12.17%                

                  Terra's crude oil reserves totaled 22.3 million                     
             barrels, or 6.12 years of production, as of August 31,                   
             1982.  On the same date, petitioner's balance sheet showed               
             investment in oil and gas properties of $619,990,000.  This              
             constituted 35 percent of petitioner's total investment in               
             property, plant, and equipment.                                          
                  At all relevant times, Terra's operating results,                   
             assets, and liabilities were included in petitioner's                    
             consolidated financial statements submitted to the                       
             Securities and Exchange Commission, its member-patrons,                  
             and its creditors.  Each of petitioner's annual reports                  
             included a discussion of Terra's operations.  However,                   
             petitioner's consolidated financial statements did not                   
             disclose its interest in Terra.  Petitioner's and CRA's                  
             separate and unconsolidated financial statements listed the              
             Terra stock in an asset account entitled “Investments in                 





Page:  Previous  24  25  26  27  28  29  30  31  32  33  34  35  36  37  38  39  40  41  42  43  Next

Last modified: May 25, 2011