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subject interests in True Oil and Belle Fourche. Mr. Gustavson
testified at trial regarding the fair market value of Belle
Fourche assets only, due to the parties’ agreement on the value
of True Oil’s oil and gas properties. In addition, Mr. Gustavson
prepared reports (Gustavson rebuttals) and testified in rebuttal
to the final Lax report and the Kimball reports.58 Mr.
Gustavson’s rebuttal testimony solely dealt with the valuations
of interests in True Oil and in Belle Fourche.
III. Preliminary Matters Regarding Valuation
A. Respondent’s Alleged Concessions Regarding Valuation
Discounts
In a telephone conference on January 8, 1999, the Court
asked the parties to submit schedules, before trial, setting
forth their positions on the fair market values of the interests
still in dispute. The parties responded by jointly submitting
schedules, attached to a cover letter dated January 14, 1999,
entitled “Comparison of Values of Transferred Interests”
determined as of January 1, 1993, June 4, 1994, and June 30, 1994
(Exhibit 262-P).
Exhibit 262-P contained information about each company under
the following headings: Return Value/Book Value, IRS Value per
58Mr. Gustavson also prepared rebuttal reports to the Scotia
reports and the SRC appraisals. As a result of the parties’
agreement regarding the value of True Oil’s reserves, Mr.
Gustavson did not testify in rebuttal to the Scotia reports.
However, those rebuttal reports, as well as Dr. Caldwell’s
rebuttal to the Gustavson report, were admitted into evidence.
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