Chaparral Energy SEC (Securities Exchange Commission) filings
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Reveals how Chaparral Energy received $30 million in false claim tax credits, for a $15 million investment.

Note: The language found on the SEC filings is confusing and conflicting, when referring to "two venture capital limited liability companies." There are usually for at least two, and occassionally more. In this case two of the Altus Venture's family of LLC's were involved; Altus Venture Capital Fund V and Oklahoma Industrial Venture Capital Co; and investors invest in one or both.

Altus Venture SEC Forms

SEC Form D submitted for Altus Venture Capital Fund V, LLC, November 9, 2006   View SEC Filing


Chaparral Energy, Inc.
Commission file number: 333-134748
CIK - 1346980 - (Dollars in thousands, except per share data )

Key parts of Chaparral filings extracted.

Pre-disclosure SEC filings
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Form S-1 Initial Public Offering, December 29, 2005
Form S-1 IPO Amendment No 2, 03/30/2006
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Subsequent to December 31, 2005, the Company signed a subscription certificate for $10,000 to purchase approximately 30% general partners interest in a venture capital limited liability company, Altus Venture Capital Fund V, L.L.C. The Companys return on the investment will be receipt of tax credits to be applied to our Oklahoma production taxes incurred after July 1, 2006. The investment will be accounted for as a production tax benefit asset and will be amortized to other income using the effective yield method.

Form 10-Q June 30, 2009
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Production tax benefit asset

During 2006, we purchased interests in two venture capital limited liability companies resulting in a total investment of $15,000. Our return on the investment was the receipt of $2 of Oklahoma tax credits for every $1 invested and was recouped from our Oklahoma production taxes. The investments are accounted for as a production tax benefit asset and are netted against tax credits realized in other income using the effective yield method over the expected recovery period. As of December 31, 2008 and June 30, 2009, the carrying value of the production tax benefit asset was $13,685 and $43, respectively. Oklahoma production tax credits of $323 and $2,684, respectively, for the three months ended June 30, 2008 and 2009 and $688 and $13,544, respectively, for the six months ended June 30, 2008 and 2009 were included in other income in the consolidated statements of operations.

Production tax credit 1

During 2006, we purchased interests in two venture capital limited liability companies resulting in a total investment of $15.0 million. Our return on the investment was the receipt of $2 of Oklahoma tax credits for every $1 invested and was recouped from our Oklahoma production taxes. The investments are accounted for as a production tax benefit asset and are netted against tax credits realized in other income using the effective yield method over the expected recovery period. As of June 30, 2009, we had received $30.0 million of proceeds from the Oklahoma tax credits.

During the three and six months ended June 30, 2009, we received cash of $5.3 million and $27.2 million, respectively, from application of these tax credits. This source of cash received will not be available in future periods.

Production tax credit 2

Production tax credits

During 2006, we purchased interests in two venture capital limited liability companies resulting in a total investment of $15.0 million. Our return on the investment was the receipt of $2 of Oklahoma tax credits for every $1 invested and was recouped from our Oklahoma production taxes. The $2 of Oklahoma tax credits for every $1 invested and was recouped from our Oklahoma production taxes. The investments are accounted for as a production tax benefit asset and are netted against tax credits realized in other income using the effective yield method over the expected recovery period. Other income for the three months ended June 30, 2008 and 2009 includes Oklahoma production tax credits of $0.3 million and $2.6 million, respectively. Other income for the six months ended June 30, 2008 and 2009 includes Oklahoma production tax credits of $0.7 million and $13.5 million, respectively. This source of income will not be available in future periods.

SEC Form 10-Q September 09, 2006
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Production Tax Credit

During September 2006, we purchased an interest in a venture capital limited liability company for $5.0 million and have subsequently purchased additional interests resulting in investments totaling $15.0 million in two venture capital limited liability companies. Our expected return on the investment will be receipt of $2 of Oklahoma tax credits for every $1 invested to be recouped from our Oklahoma production taxes.

Notes:

During September 2006, the Company purchased an interest in a venture capital limited liability company for $5,000 and has subsequently purchased additional interests resulting in investments totaling $15,000 in two venture capital limited liability companies. The Companys expected return on the investment will be receipt of $2 of Oklahoma tax credits for every $1 invested to be recouped from our Oklahoma production taxes. The investments will be accounted for as a production tax benefit asset and will be amortized to other income using the effective yield method over the expected recovery period.

Form S-1 IPO Amend No 4 June 06, 2007
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Production Tax Credit

During September 2006, we purchased an interest in a venture capital limited liability company for $5.0 million and have subsequently purchased additional interests resulting in investments totaling $15.0 million in two venture capital limited liability companies. Our expected return on the investment will be receipt of $2 of Oklahoma tax credits for every $1 invested to be recouped from our Oklahoma production taxes.

Notes:

During September 2006, the Company purchased an interest in a venture capital limited liability company for $5,000 and has subsequently purchased additional interests resulting in investments totaling $15,000 in two venture capital limited liability companies. The Companys expected return on the investment will be receipt of $2 of Oklahoma tax credits for every $1 invested to be recouped from our Oklahoma production taxes. The investments will be accounted for as a production tax benefit asset and will be amortized to other income using the effective yield method over the expected recovery period.

Form 10-K, December 31 2007
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Production tax benefit asset

During 2006, the Company purchased interests in two venture capital limited liability companies resulting in a total investment of $15,000. The Companys expected return on the investment will be receipt of $2 of tax credits for every $1 invested to be recouped from our Oklahoma production taxes. The investments will be accounted for as a production tax benefit asset and will be netted against tax credits realized in other income using the effective yield method over the expected recovery period. The production tax benefit assets are included in other assets in the consolidated balance sheets.

Production Tax Credit

During 2006, we purchased interests in two venture capital limited liability companies resulting in a total investment of $15.0 million. Our expected return on the investment will be receipt of $2 of tax credits for every $1 invested to be recouped from our Oklahoma production taxes. The investments will be accounted for as a production tax benefit asset and will be netted against tax credits realized in other income using the effective yield method over the expected recovery period.

Form 10-K, December 31 2008
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Production tax benefit asset

During 2006, the Company purchased interests in two venture capital limited liability companies resulting in a total investment of $15,000. The Companys expected return on the investment will be the receipt of $2 of tax credits for every $1 invested to be recouped from our Oklahoma production taxes. The investments are accounted for as a production tax benefit asset and will be netted against tax credits realized in other income using the effective yield method over the expected recovery period. As of December 31, 2007, a production tax benefit asset of $14,255 was included in other assets in the consolidated balance sheet. As of December 31, 2008, the carrying value was $13,685. Of the $1,490 approved for payment in 2007, $745 was recognized as income and $745 as a reduction of the asset. Of the $1,420 approved for payment in 2008, $711 was recognized as income and $711 as a reduction of the asset. Subsequent to December 31, 2008, we have received an additional $21,843 of proceeds from the tax benefit asset.

Production Tax Credit

During 2006, we purchased interests in two venture capital limited liability companies resulting in a total investment of $15.0 million. Our expected return on the investment will be the receipt of $2 of tax credits for every $1 invested to be recouped from our Oklahoma production taxes. The investments are accounted for as a production tax benefit asset and will be netted against tax credits realized in other income using the effective yield method over the expected recovery period. As of December 31, 2008, we had received $2.8 million of proceeds from the tax credits. Subsequent to December 31, 2008, we have received an additional $21.8 million of proceeds.




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