McLean v. Commissioner’s Empirical Analysis

Citation profile

3 federal appellate ·

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 28 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. ““I, Harrs McLean, for the consideration hereinafter set forth, (and subject to the royalty reservation hereinafter contained), have Granted, Sold, Conveyed, Transferred and Assigned, and do by these presents, Grant, Sell, Convey, 'Transfer and Assign unto Yount-Lee Oil Company * ® ® the following described oil, gas and mineral leases and the ■oil, gas and mineral leasehold estates created thereby * * * “The consideration for this transfer and assignment of said above-described oil, gas and mineral lease and physical properties and equipment is as follows: ■(a) The sum of One Hundred Thousand ($100,000) Dollars cash, receipt of which is hereby acknowledged by Grantor; (b) Two Hundred Thousand ($200,000) Dollars due and payable six (6) months aft■er ,the date hereof, and Two Hundred Thousand ($200,000) Dollars due and payable twelve (12) months after the date hereof; said deferred payment to bear no interest; (c) Two Million ($2,000,000) Dollars to be paid out of one-eighth (%) of the (gross) oil produced and saved from the lands covered by this assignment, if, .as and when produced and saved, and only in such event; it being expressly understood in this connection, that said Yount-Lee Oil Company shall be under no obligation whatever to Grantor herein ■to drill upon or develop said land, or any ■part thereof, for oil. “There is reserved and excepted from this assignment a royalty of twenty-five (25%) per cent of the oil produced and saved from the lands covered by this assignm”

   1 later decision quote this exact passage
   e.g. McLean v. Commissioner

2. “The distinction drawn by the courts and already referred to under the first issue is determinative of this issue also, the distinction being between contracts made in consideration of cash and a share of the profits from the operation of the properties which result in a sale and contracts whereby an economic interest in the oil is reserved. The contracts covering the Phoenix, Antoine, and Turner leases were clearly contracts of the first kind and resulted in sales of the entire interest which the petitioners had in the leases and any oil covered thereby. Consequently, the petitioners had no dopletable interest thereafter and are not entitled to any deductions for depletion. Helvering v. Elbe Oil Land Development Co., supra; Blankenship v. United States, supra.”

   1 later decision quote this exact passage
   e.g. Japhet v. Commissioner

3. “* * * The term “gross income from the property” means the gross income-from the property received by the particular taxpayer claiming a deduction for depletion and is synonymous with the amount to be included in the taxpayer’s-gross income under section 22. Helvering v. Twin Bell Oil Syndicate, 293 U. S. 312 . The gross income from the property, from the standpoint of the McLeans^ was the amount Which Gulf paid them. They do not even suggest the propriety of including any greater amount in their gross income under section 22. No doubt the amount which Gulf paid them would be considered a rent or royalty-paid by that taxpayer in respect of the property in computing its deduction under section 114 (b) (3). * * *”

   1 later decision quote this exact passage
   e.g. Kirby Petroleum Co. v. Commissioner