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Issue 1. Does Book Value Price Specified in Buy-Sell
Agreements Control Estate and Gift Tax Values of
Subject Interests in True Companies? .......... 10
FINDINGS OF FACT ...................... 10
I. Background .................... 11
A. True Family ................. 11
B. Formation and Growth of True Companies .... 12
1. Reserve Drilling ............. 12
2. True-Brown Partnerships .......... 13
3. True Oil and True Drilling ........ 14
4. Belle Fourche Pipeline Co. ........ 15
5. Black Hills Oil Marketers, Inc./True Oil
Purchasing Co./Eighty-Eight Oil Co./Black
Hills Trucking, Inc. .......... 18
6. True Ranches ............... 20
7. White Stallion Ranch, Inc. ........ 21
8. Other True Companies ........... 22
C. Methods of Accounting Used by True Companies . 23
D. Family Members’ Employment in True Companies . 24
E. Family Gift Giving and Business Financing
Practices ................. 27
II. True Family Buy-Sell Agreements ......... 28
A. Origin and Purpose .............. 28
B. First Transfers of Interests in Belle
Fourche, True Oil, and True Drilling to
True Children ............... 30
C. Wyoming U.S. District Court Cases on Belle
Fourche and True Oil Transfers ....... 35
D. Tamma Hatten’s Withdrawal From True Companies . 39
E. Use of Similar Buy-Sell Agreements in All
True Companies Except White Stallion;
Amendments and Waivers ........... 42
F. Unique Provisions of White Stallion Buy-Sell
Agreement ................. 48
G. Future of True Family Buy-Sell Agreements ... 50
III. Transfers in Issue ................ 51
A. 1993 Transfers of Partnership Interests by
Dave True ................. 51
B. 1994 Estate Transfers ............. 53
C. 1994 Transfers by Jean True .......... 55
IV. Subsequent Income Tax Litigation Regarding
Ranchland Exchange Transactions ........ 55
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Last modified: May 25, 2011