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Each of the leases for the five leased tracts contains a similar
provision regarding use of the premises.
The March 1968 lease for the Barnes Rogers, et al. tract
contained the following rent escalation clause in its “Rent”
provision:
Gulf States will pay to LESSORS an annual rental
beginning at the rate of $3.00 per acre; provided,
however, that during the term of the lease and any
renewal thereof, that the annual rental per acre
shall be increased or decreased by the same percentage
as the annual average of the Wholesale Price Index for
All Commodities, published by the United States
Department of Labor, Bureau of Labor Statistics,
shall increase or decrease over or under the average
for the calendar year 1966, but the rental rate shall
not be adjusted more than once annually and only for
increments of increase or decrease of 5% or more of
the 1966 average with respect to the first adjustment
or from the average which made necessary the previous
increase or decrease of rental rate with respect to
any subsequent adjustment.
Each of the leases for the five leased tracts contains a similar
rent escalation clause in its Rent provision.
With respect to the five leased tracts that petitioner
asserted were comparable to decedent’s lands which are specially
valued, the annual gross rentals for the 5 calendar years
preceding decedent's death are as follows:
1987 1988 1989 1990 1991
Barnes Rogers et al. $15,503.76 $15,503.76 $15,503.76 $15,503.76 $16,386.35
March Lease
1665.28 acres
Barnes Rogers, et al. 8,014.05 8,014.05 8,014.05 8,014.05 8,470.27
Timberland - April Lease
860.8 acres
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