Harland and Shirley Stonecipher - Page 7




                                         -7-                                          
               Over the years, petitioners undertook a number of changes or           
          improvements to their cattle raising activity.  They cleared,               
          bulldozed, and brush-hogged portions of the property to make dirt           
          roads and to improve the pasture for the cattle.  As previously             
          indicated, they built some fencing and three ponds.  They planted           
          Bermuda and Lespedeza grasses on some of the property.                      
               Petitioners were thrifty and frequently looked for bargains            
          in managing their cattle ranch.  For example, at one point,                 
          petitioners made a bargain purchase of 26 tons of feed pellets.             
          To store the feed, they poured all 26 tons of it through a                  
          chimney and into an unoccupied old ranch house on the property.             
          For many years, they fed their cattle from old used bathtubs,               
          which they purchased for this purpose, rather than spend $300               
          each for cattle feeders.  In 1993, so that they could buy feed in           
          bulk and thereby save on feed costs and related labor,                      
          petitioners purchased a bulk feed bin for $3,500.  Also in 1993,            
          to save on labor, petitioners changed from using square bales of            
          hay to rolled bales.                                                        
               During the years in issue, on condition that they be allowed           
          to keep the hay for no charge, petitioners made a deal with the             
          State of Oklahoma to cut and bale hay on a nearby State highway             
          right-of-way.                                                               
               Petitioners bought used trucks and equipment, including two            
          junk trucks for parts.                                                      






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