Dale A. Rinehart and Jeana L. Yeager, f.k.a. Jeana L. Rinehart, et al. - Page 10




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          when to collect his stallions’ semen.  This allowed him to                  
          maximize the opportunity to fertilize his mares.12                          
               In the fall of 1996, Mr. Rinehart met Dr. John Allen, a                
          practicing veterinarian for 30 years and specialist in equine               
          reproduction.13  After some discussions, Mr. Rinehart decided to            
          have Dr. Allen work at the Campbell ranch.  At this time, the               
          artificial insemination program included sonograms performed by             
          Dr. Allen.  The sonograms allowed Mr. Rinehart to determine                 
          better when the mares were ready for breeding and whether they              
          were pregnant.  Since Dr. Allen joined Mr. Rinehart’s horse                 
          breeding activity, the pregnancy rate of Mr. Rinehart’s breeding            
          program increased from a rate of 40 to 45 percent to a rate of 85           
          to 90 percent.                                                              
          The Horse Breeding Activity’s Records                                       
               Mr. Rinehart maintained a ledger with handwritten monthly              
          expenses of the horse breeding activity until January 1994.                 
          Starting in 1993, Mr. Rinehart began keeping records for the                
          horse breeding operation on a computer.  Mr. Rinehart kept a                
          register report, cash-flow report, itemized category report,                


               12  Mr. Rinehart’s mares were in heat between 7 and 9 days.            
          The stallions’ semen lives only 48 hours after ejaculation.                 
          Setting a schedule of when to collect semen and inseminate the              
          mares allowed him to maximize the chances of fertilization.                 
               13  Dr. Allen’s expertise in equine breeding included such             
          areas as fertility, sterility, normal breeding management,                  
          artificial insemination, and embryo transfers.                              





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