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True Oil’s fixed assets increased from $28.4 million in 1988
to $36.6 million in 1993. Total assets decreased from a high in
1991 of approximately $41.4 million to $18.4 million in 1993.
Current liabilities increased from $7.8 million in 1990 to $8.1
million in 1993. True Oil carried no funded debt during the
period being examined, so that current liabilities represented
total liabilities.
During the period 1988 through 1994, withdrawals from
partners’ capital exceeded contributions by approximately $26.8
million. However, in the last 4 of those years (1991 to 1994),
total contributions exceeded distributions by almost $2.5
million.
General partnership interests in True Oil have never been
traded in public markets.
II. Belle Fourche
Belle Fourche’s primary asset is a network of pipelines it
uses to gather and transport crude oil. At the valuation dates,
Belle Fourche had approximately 1,740 miles of gathering line and
870 miles of main line. Crude oil was collected into the
gathering line system from the production point (e.g., wellhead
or stock tank) and eventually reached a main line for
distribution to the market via oil storage facilities or
transportation to other pipelines.
Throughput is the standard measure for pipeline operations
that describes the amount of fluid transported through the system
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