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They therefore liquidated TOPCO and transferred its crude oil
marketing business to a preexisting Wyoming general partnership,
Eighty-Eight Oil Co. (Eighty-Eight Oil).
Dave and Jean True owned 95 percent and 5 percent,
respectively, of Eighty-Eight Oil when they formed it in 1956.
In 1975, the four True children each purchased an 8-percent
general partnership interest from Dave True, which reduced his
partnership interest to 63 percent.
The crude oil marketing business operated by Eighty-Eight
Oil and its predecessors generated considerable cash-flows; the
Trues regarded it as a “cash cow”. Eighty-Eight Oil often served
its partners as a repository of excess cash. At times, due to
disproportionate capital contributions or withdrawals, the
capital accounts of the partners varied widely from their
interests in profits and losses. During the 1990's, Eighty-Eight
Oil transacted most of its business with unrelated parties.
Black Hills Trucking, Inc. (Black Hills Trucking), began as
a division of Black Hills Oil that transported crude oil to
pipelines. Its services grew to include moving drilling rigs and
hauling water, livestock, products, and pipe for related and
unrelated customers. As a result of the expansion of the
activities of Black Hills Trucking, and regulatory price caps
imposed on Black Hills Oil, the True family decided to make Black
Hills Trucking a separate entity.
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