Limestone And Dolomite: Geologists And Percentage Depletion Allowances

The Revenue Act of 1926 provided for five simple categories of natural resources to have the benefit of depletion allowances. In the 1947 Revenue Act, the number was increased to twenty-five, and in the 1951 Revenue Act to fifty-four. Of this number, fourteen were allowed 5 per cent; nine, 10 per cent; twenty-nine, 15 per cent; one, 23 per cent; and one (oil and gas), 27.5 per cent. The 1951 Revenue Act created a host of difficulties, including application of the "end- use criterion" and determination of the commonly accepted meaning of such terms as limestone, dolomite, chemical- and metallurgical-grade limestone, marble, calcium carbonates, and magnesium carbonates. Dolomite, for example, was listed at 10 per cent depletion allowance, but without definition. In the great amount of litigation growing out of the 1951 Revenue Act and its administration, it became essential to understand the derivation and subsequent usage of these common geologic terms. One thing that became clear was that our definitions changed significantly between the time that the 1951 Revenue Act became law and the time that later cases were tried. Some geologists neglected to learn about first usages of such terms as metallurgical limestone, and about meanings that were applicable when the 1951 Revenue Act was written and passed. Legal meanings in this paper are discussed in the light of certain famous cases that have been tried and settled.