Court of Appeals for the Ninth Circuit February 2, 1960, 16201 (Bankline Oil Company v. Commissioner of Internal Revenue)

CHAMBERS, Circuit Judge.

Wet gas, sometimes called casing head gas, from oil wells in the Signal Hill area of Long Beach, California, is at the root of Bankline’s income tax problems on review here for the year 1952. (The problems arise out of an agreement it made with the Signal Oil Company in that year.) When processed, this wet gas produces three products: natural gasoline, propane and dry gas.