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horse activity in the 1980s and discontinued the activity during
1987 because it was expensive, competitive, and risky, and he had
a champion mare that had achieved success by winning the Pacific
Coast Derby. During 1996, Rance and LaRhea purchased
approximately 70 to 75 acres of land in Oregon. In October 1998,
they began construction of a house, an office, a barn, fences,
and stalls. The property was to be for their personal residence
and activities as well as for conducting part of their Beneco
business. Construction was completed in November 1999, after
which Rance and LaRhea moved to the Oregon property.
The barn had four horse stalls, a tack room, a feed room,
and storage for hay and related farm equipment. During 1999,
Rance purchased P.K., a driving horse which pulled carts and
wagons and which Rance rode. Also during 1999, Rance purchased
Leo, a western pleasure mule, which he rode around the Oregon
property to check fences and tend the property. P.K. was sold
sometime during 2000 or 2001. Rance also purchased Popcorn, a
Royal Dartmoor pony mare that was in foal. Popcorn was a hunter/
jumper, and she was sold, along with her foal, sometime in 2001
or 2002.
Rance again became involved in cutting horse activity
because he could afford horses with better pedigrees. He
purchased a 4-year-old, Dual Docs (Dual Docs), in 2001 for
$30,000 and placed him in training in Medford with Bobby and
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