[Federal Register Volume 60, Number 76 (Thursday, April 20, 1995)]
[Notices]
[Pages 19793-19794]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9725]



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SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 21009; 811-10930]


Columbia Ventures, Inc.

April 14, 1995.
AGENCY: Securities and Exchange Commission (``SEC'').

ACTION: Notice of Application for Deregistration under the Investment 
Company Act of 1940 (the ``Act'').

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APPLICANT: Columbia Ventures, Inc.

RELEVANT ACT SECTION: Sections 3(c)(9) and 8(f).

[[Page 19794]] SUMMARY OF APPLICATION: Applicant requests an order 
declaring that it has ceased to be an investment company.

FILING DATE: The application was filed on December 13, 1994, and 
amended on March 30, 1995.

HEARING OR NOTIFICATION OF HEARING: An order granting the application 
will be issued unless the SEC orders a hearing. Interested persons may 
request a hearing by writing to the SEC's Secretary and serving 
applicant with a copy of the request, personally or by mail. Hearing 
requests should be received by the SEC by 5:30 p.m. on May 9, 1995 and 
should be accompanied by proof of service on the applicant, in the form 
of an affidavit or, for lawyers, a certificate of service. Hearing 
requests should state the nature of the writer's interest, the reason 
for the request, and the issues contested. Persons may request 
notification of a hearing by writing to the SEC's Secretary.

ADDRESSES: Secretary, SEC, 450 5th Street, NW., Washington, DC 20549. 
Applicant, 809 North State Street, suite 215; Jackson, Mississippi 
39202.

FOR FURTHER INFORMATION CONTACT:
Sarah A. Buescher, Staff Attorney, at (202) 942-0573, or Robert A. 
Robertson, Branch Chief, at (202) 942-0564 (Division of Investment 
Management, Office of Investment Company Regulation).

SUPPLEMENTARY INFORMATION: The following is a summary of the 
application. The complete application may be obtained for a fee from 
the SEC's Public Reference Branch.

Applicant's Representations

    1. Applicant, a New York corporation, registered under the Act on 
November 8, 1961. Applicant also was licensed as a small business 
investment company by the Small Business Administration (``SBA'').
    2. In 1973, applicant acquired certain oil and gas mineral rights 
and real estate from a small business company in exchange for the 
securities of that company held by applicant. By December 31, 1974, 
those assets constituted approximately 52 percent of the fair value of 
applicant's assets. At the 1975 annual meeting, stockholders adopted 
amendments to applicant's fundamental policies to allow applicant to 
concentrate its investment in real estate and oil and gas mineral 
rights and leases.
    3. In 1980, Applicant defaulted on a subordinated debenture payable 
to the SBA (``SBA Indebtedness'') which resulted in the acceleration of 
the entire SBA Indebtedness. Applicant and the SBA entered into an 
agreement (``SBA Agreement'') which extended the maturity of the SBA 
Indebtedness and replaced an earlier agreement with the SBA. On 
December 31, 1986, applicant defaulted on its principal and accrued 
interest payment obligations to the SBA. Applicant repaid the principal 
balance in cash in June 1988 and in September 1989, applicant 
transferred two tracts of property to the SBA for settlement of accrued 
interest. Applicant relinquished its license as a small business 
investment company to the SBA in September 1989.
    4. At a 1993 special meeting, applicant's shareholders approved an 
amendment to applicant's fundamental policies to state that applicant's 
business shall consist of purchasing, selling, owning or holding oil, 
gas, or other mineral royalties or leases. Applicant does not 
anticipate any substantial income and/or loss in the future from 
investment in investment securities. Income is expected to be derived 
from the mineral interests held by applicant. Applicant now manages its 
mineral interests and real property holdings and proposes to continue 
in such business for the foreseeable future.

Applicant's Legal Analysis

    1. Applicant believes that it is no longer an investment company by 
virtue of the exception in section 3(c)(9) of the Act. Section 3(c)(9) 
specifically excepts from the definition of investment company ``[a]ny 
person substantially all of whose business consists of owning or 
holding oil, gas, or other mineral royalties or leases, or fractional 
interests therein, or certificates of interest or participation in or 
investment contracts relative to such royalties, leases, or fractional 
interests.'' Section 8(f) of the Act provides, in pertinent part, that 
whenever the SEC, on its own motion or upon application, finds that a 
registered investment company has ceased to be an investment company it 
shall so declare by order, and upon the taking effect of such order the 
registration of such company shall cease to be in effect.
    2. Applicant believes it is appropriate for the SEC to deregister 
the applicant because it engages in section 3(c)(9) activities. 
Applicant's fundamental policy is similar to section 3(c)(9) since it 
provides that ``The Company's business shall consist of purchasing, 
selling, owning or holding oil, gas, or other mineral royalties or 
leases, or fractional interests therein * * *.'' Applicant owns both 
the mineral rights and mineral royalties for certain properties and, 
for other properties, owns the mineral rights only. Its mineral rights 
are direct ownership interests in minerals in the ground, and it 
receives income from mineral leases when it leases the mineral rights 
and mineral royalty income when the minerals are extracted. Applicant 
believes that these activities are the type of business referred to in 
section 3(c)(9), i.e., ``owning or holding oil, gas, or other mineral 
royalties or leases.''
    3. As of December 31, 1993, 98.9 percent of the fair value of 
applicant's assets (exclusive of cash and land) consisted of mineral 
rights and leases. 10.5 percent of the fair value of applicant's assets 
consisted of land not incident to the mineral rights and leases. For 
the fiscal year ended December 31, 1993, other than interest income 
from cash in banks, 99 percent of applicant's income was derived from 
mineral lease royalties.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-9725 Filed 4-19-95; 8:45 am]
BILLING CODE 8010-01-M