Richard J. and Melodie D. McKeever - Page 8




                                                - 8 -                                                  
                  In 1989, petitioners purchased three breedings from Mr.                              
            Minter’s stallion, Bochica Tres, for a total of $8,000.  Bochica                           
            Tres has been a “top-ten stallion” many times.  However, the                               
            foals produced as a result of these breedings were all                                     
            unsatisfactory and eventually sold at or below the cost of                                 
            Bochica Tres’ stud fee.                                                                    
                  In 1994, petitioners began using one of their home-foaled                            
            horses, Sindicato de Norco, as a breeding stallion.  Although he                           
            sired two foals, neither foal met petitioners’ quality standards,                          
            and Sindicato de Norco was gelded in 1997.6                                                
                  The breeding history with respect to petitioners’ brood                              
            mares through and including the years at issue is summarized in                            
            the following chart:                                                                       
















                  6Since 1996, petitioners have used El Ni�o Cisco de Norco as                         
            their herd sire.  In 1997, petitioners began using transported                             
            semen from well-known paso fino stallions to inseminate some of                            
            their mares.                                                                               





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